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Nothing divides investors more than the debate over positive and negative gearing when it comes to property investment. You’ll frequently hear these two opposing viewpoints advocated.

Negative and positive gearing are terms you hear a lot, but I believe many people don’t know what they imply. I’ll explain what those terms mean in detail and why some investors prefer to invest in negatively geared houses.

Australia’s tax rules may appear complicated to property investors, but knowing negative and positive gearing is essential. The way a property is geared has a significant impact on an investor’s bottom line, so picking the optimal choice is vital.

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