When most people think of negative gearing, they think of property. But negative gearing can occur with any asset for which some or all of the purchase price is borrowed. This article provides a worked example of negative gearing using an Exchange Traded Fund (ETF) to buy a diversified portfolio of shares.
There are two ways to think about the price of anything. The first is the number of dollars it would cost to purchase that thing. The second is to think about what else we could spend our money on. This is called ‘opportunity cost’ and it is always worth remembering when you make a purchase.
Did you know that two loans that look identical can have a radically different impact on your financial management? The difference lies in whether interest on a loan is deductible or not.
As 2017 draws to a close, Australia continues its record breaking run of economic growth. It is quite the gift for all of us. As our way of saying thanks for the good fortune of living here, here are some fun things to celebrate about life in Australia. Please enjoy the holiday period and we look forward to seeing you in 2018.
2017 has been a year of low interest - record low interest rates, that is. But record low prices don’t last forever. Interest rates will rise again. In the meantime, make 2018 your year of repaying non-deductible debt. That might make it your best year ever.