You have probably heard the term ‘positive gearing.’ It is a similar concept to negative gearing, which is certainly in the news a lot these days. We use the term ‘gearing’ whenever debt is used to fully or partly finance an investment. If you have $90,000 of your own and borrow $10,000 to buy an … Continue Reading

Positive gearing is the opposite of negative gearing. It is jargon for borrowing to buy an investment where the expected assessable income is more than the expected deductible interest cost (and other costs). Income is greater than expenses, and your assessable income increases accordingly. In the context of housing, if you borrow the full purchase price, … Continue Reading

As financial planners, helping our clients manage their family home is one of the most enjoyable things we do. We love family homes. For a start, we love families – and families live in family homes. What’s more, enjoying your home is the easiest way to enjoy life in general. A happy home – and … Continue Reading

Buying a family home is a unique purchase. While the fundamental elements of demand and supply will impact on the economic performance of a home, how much a person enjoys living in a home will vary according to their personal preferences. So, how do people determine their personal preferences? There are three common variables: location, features and … Continue Reading

Through no fault of their own, younger Australians are finding the housing market hard to enter. At the same time, their parents and grandparents are doing very well if they own a home. There is no point in waiting for an inheritance: the average age for receiving one of them is mid-50s. So, how can … Continue Reading