Just having trouble knowing which way I'm geared in this senario.
All my expenses (excluding depreciation) = $400 pw
Rental Income $400 pw
Depreciation $100 pw
Am I...
1) Neutral because Rent = Expenses (the expenses I have to pay)
OR
2) Negative because my Expenses (and Depreciation) are greater than my income.
OR
3) Positive because I actually get $40 pw back from the Tax man.
I realise that if I didn't have a job and wasn't paying tax I wouldn't get that $40 'rebate' so I figure I'd be neutral...
If someone asks me my strategy for this property I'd say positive geared. Did I reach my goal... I don't know!
Cheers...
All my expenses (excluding depreciation) = $400 pw
Rental Income $400 pw
Depreciation $100 pw
Am I...
1) Neutral because Rent = Expenses (the expenses I have to pay)
OR
2) Negative because my Expenses (and Depreciation) are greater than my income.
OR
3) Positive because I actually get $40 pw back from the Tax man.
I realise that if I didn't have a job and wasn't paying tax I wouldn't get that $40 'rebate' so I figure I'd be neutral...
If someone asks me my strategy for this property I'd say positive geared. Did I reach my goal... I don't know!
Cheers...