Creative Wealth Management

Getting the Most From Negative Gearing

Gearing (Borrowing to Invest)

Today, there are a wide variety of investment products available to cater for investors who want to gear to invest. From the humble home loan to purchase the family home through to 100% lend products that have the option of capital protection built in to them.

Gearing is the act of borrowing to invest. This can be achieved in a number of ways.

  • Instalment - regular loan draw downs over time
  • Lump Sum - one single larger amount
  • Internally Geared Managed Funds
  • Structured Products
  • With or Without Capital Protection

Gearing strategies are not necessarily appropriate for everyone. In the advice process we will identify and advise you if we believe a gearing strategy is appropriate for your needs and circumstances. We will assess the appropriateness of a gearing strategy on a number of key factors:

  • Risk Tolerance
  • Affordability / Cash Flow
  • Investment Time Frame
  • Strategic Flexibility
  • Tax Effectiveness