Negative Gearing ELI5?
I'm trying to wrap my head around this, and with all the Interest Rate hikes coming.
Negative Gearing.
Say I live in my house, currently mortgaged 500k owing, property worth 800k.
I move out, rent my house out, and start renting myself.
For argument's sake, the rent I receive pays for my rent.
I obviously still have mortgage repayments which are fine.
My partner and I have a combined income of 150k. (90k + 60k)
Am I going to be better off financially? I'm assuming not.
I've got an appointment with a Tax Accountant in the next couple of weeks, but am looking for some input and perhaps an easy-to-understand link to Negative Gearing scenarios.
Thanks for reading!