The Truth About Negative Gearing: Who It Helps (and Who It Doesn’t)

Negative gearing is one of the most misunderstood concepts in Australian property investing, and also one of the most politically charged. In this episode, we break down exactly what negative gearing is, how it works, and when it actually benefits investors.Put simply, negative gearing allows you to offset the losses from holding an investment property against your taxable income. But beyond the textbook definition, we explore why negative gearing exists, how it influences investor behaviour, and why removing it would reshape the entire housing market.Inside this episode we unpack:• what negative gearing is in plain English• why the government allows you to offset property losses• how negative gearing impacts rental supply and affordability• how high-income earners use it during peak earning years• the link between land value, capital growth and negative gearing• how depreciation plays into the equation• why negative gearing is a benefit, not a standalone strategy• the real-world numbers showing how tax can reduce the “cost” of holding growth assets• how to blend growth assets with cash-flow assets to balance a portfolioWhether you’re new to property investing or scaling toward a multi-property portfolio, understanding negative gearing helps you use tax as a tool, not a driver, to buy the right assets for long-term wealth.About the Folio Property PodcastEach week, Reece Beddall & Lachlan Delahunty break down the biggest conversations shaping Australian property. From market cycles to debt, strategy, data, and real-world insights, we make property simple, honest, and practical.📍Visit Our Website: https://follio.com.au/📩 Contact Us: [email protected]📲 Follow Us on Social:Instagram: https://www.instagram.com/folliopropertypod/TikTok: https://www.tiktok.com/@folliopropertypod Spotify: https://open.spotify.com/show/4Akt4N53zsb4ldzFNlTwad?si=AFEgYOAiSh2QGbK8AfFLywLachlan Delahunty: https://www.linkedin.com/in/lachlandelahunty/Reece Beddall: https://www.linkedin.com/in/reece-beddall-294557b3/If you enjoy the episode, hit Like, Subscribe, and Comment to support the channel and join the conversation.#negativegearing#propertytax #propertystrategy#australianpropertymarket#investmentproperty#taxplanning#wealthcreation#propertyinvesting#realestateinvesting#capitalgrowth Track: MoodMode - Upbeat Hip Hop Boom Bap Background MusicMusic provided by MoodMode