Gearing

Borrowing to invest, or gearing, can be a useful investment strategy. Eureka Report’s expert commentators explain the pros and cons of gearing, why it can be a tax-effective investment strategy, and the types of assets and securities that lend themselves to a geared strategy. Negative gearing on property, for example, is widely used by investors across Australia as a means of reducing taxable income while gaining exposure to the property market. More and more investors are also using geared lending facilities to build portfolios of shares and other securities.