Option 5 - Gearing
Gearing involves borrowing money to invest in shares and property. A profit is made when the return on the investment is greater than the interest on the borrowing. If the cost of borrowing in a year is higher than the investment income (negative gearing) a tax deduction is available. Gearing can substantially increase returns over ten years however this option may carry some risk. We can speak to you on what these are.
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