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Why not put it into the PPOR monthly? $8k paid in monthly lots and reinvested at 8% will put you around $300 better off at the end of the year than getting it all in one go :) BTW, actually, it's probably more given the delay between end of year, lodging a return then having the money hit...

Of course the other problem is that while interest rates are where they are at present even the yields mentioned above will still leave you negatively geared.

Have you considered lodging an income variation so this is recouped in each pay packet rather than in one block at a much later date?

It's very difficult to rationally discuss this in absolutes. Is being positively geared by $100 a year a good thing and negatively geared by -$100 a year a bad thing when you're maybe talkikng about a $300k property? Is it still a good a good thing if it was positive by $100 a year ago and now...

But keep in mind the deposit (assumably) comes from an interest bearing account. If you're putting down a $100k deposit that might be $8k a year gross you're sacrificing. Granted, that might be less than the interest you save but it's a factor that should not be neglected in your calculations.

This seems to be a very black and white discussion; you're negatively geared or you're not. The reality is there is a hell of a difference between being geared so you're shelling out $10k a year as opposed to $2k a year. If you're risk averse, don't take the $10k option! The fact that prices...

If it's a buy and hold style investment you need to put it in perspective. For simplicity sake, you might buy a $200k property which is negatively geared with a net negative cash flow of $2k annually. At a 5% growth rate that first year achieves $10k of capital growth. Assuming you can fund the...