What would an investment property cost you?
The rent rarely covers the mortgage. See the real weekly out-of-pocket after the tax benefit — and what negative gearing does and doesn't do.
Rates, insurance, management, repairs, strata
Non-cash deduction (a quantity surveyor's estimate)
After tax, this costs you about
$95/week
out of your pocket — $4,920 a year. Gross rental yield 4.1%.
Negatively geared$28,600
−$33,600
−$6,000
−$11,000
+$6,080
−$4,920
Negative gearing turns the $19,000 annual loss into a $6,080 tax refund — but you're still $4,920 a year down. The strategy only pays off if capital growth outweighs that.
Assumes an interest-only loan (interest is the deductible cost) on 2025-26 rates. Depreciation is a non-cash deduction, so it improves the after-tax figure without a cash outlay. Excludes capital growth, CGT on sale, stamp duty, and loan principal. A guide, not financial advice.