Free reprint articles - copywriting & search engine SEO articles
You're welcome to reprint these articles on your website and in your e-newsletters free of charge, provided:
- you don’t change the article in any way
- you include the byline (including a link to our website)
- in doing so you agree to indemnify Divine Write and its directors, officers, employees and agents from and against all losses, claims, damages and liabilities which arise out of their use
TIP: By viewing and copying the source, you'll be able to retain all formatting.
Negative gearing made easy
There’s always a lot of talk about negative gearing. Most of it makes the whole thing sound extremely complicated. But really, it’s quite simple.
By Glenn Murray | Advertising Copywriter, Website Copywriter, Article PR Specialist *
The government knows property investment is good for the economy. They also know it can be hard on your cash flow. In order to encourage investment, they provide tax breaks for investors.
Negative gearing simply means using those tax breaks to help you pay off your investment.
So how does it work?
If you spend more maintaining your property than you get back in rent, you’re officially making a loss.
To help you cover the loss, the government lets you claim it as a tax deduction.
For example, Mary earns $60,000 a year. She has an investment property with yearly rental expenses and income as follows:
Income
Rent ($250/wk) = $13,000
TOTAL = $13,000Expenses
Interest on mortgage repayment ($1400 / mnth) = $16,800
bank fees = $100
accountants and solicitors fees = $500
repairs and maintenance = $2,000
insurance = $200
property management fees = $1,000
purchases of property related magazines and journals = $120
cleaning and gardening costs = $1,000
rates = $1,400
TOTAL = $23,120TOTAL LOSS = $23,120 - $13,000 = $10,120
Mary’s loss is $10,120. When she does her tax return, she claims this loss as a tax deduction. This reduces her taxable income from $60,000 to $49880. Instead of being taxed about $16480, she will now be taxed about $12092. She has made a tax saving of $4748.
Mary can choose to have this money refunded in a lump sum, or she can have it refunded in weekly instalments.
Either way, she can use it to pay off her loan. Instead of having to cover $10,120 out of her own pocket each year, she only has to cover $5372 ($10,120 - $4748). That means she’s only paying about 23% of the cost of her investment property. Her tenants and the taxman are paying the rest.
Using Negative Gearing, your tenants and the taxman are paying the lion’s share of your mortgage for you. And if you’ve invested wisely, your property should be increasing in value the whole time.
Disclaimer
This information is not financial advice. It is provided only for the purposes of illustrating the concept of negative gearing. The calculations used are estimates only. Please consult a financial advisor before investing.
* Glenn Murray is an advertising copywriter, website copywriter, SEO copywriter, and article submission and article PR specialist. He heads copywriting studio, Divine Write, and is a director of article PR company, Article PR. He can be contacted on Sydney +612 4334 6222 or at glenn@divinewrite.com. Visit http://www.DivineWrite.com or http://www.ArticlePR.com for further details, a FREE SEO eBook, or more FREE reprint articles.
Need a newsletter article or press release written professionally? Call Glenn in Sydney Australia on +612 4334 6222 or email glenn@divinewrite.com for a creative advertising copywriter, website copywriter, or SEO copywriter.
Contact


-

…extremely organized, dedicated and dependable …"
Toyota & Hothouse

-

…very thorough and comprehensive… extremely impressed."
CareerOne

-

By the end of the day's training, I felt the whole mystery clouding SEO had been lifted."
Westpac

-

…very responsive, thoughtful and professional…"
SEEK

-

…the words are excellent… the easiest copywriter I have ever dealt with!"
Alpine

-

…a fresh approach that speaks to the intended audiences and follows the brief."
UWS

-

…professionalism and talent… met and exceeded the very high expectations…"
SMS

-

…writing style has brought clarity to some difficult technical concepts."
Harris Technology

-

…I was hoping for a 4% conversion - your copy got me 44%!"
Hotel Online Marketing

-

I found Glenn's copywriting training course very valuable."
SEEK

-

The best copywriter I've ever worked with!"
MC3

-

…distil our position and benefits quickly and efficiently"
Volante








