Canna Campbell

But you listen to him, you will not be putting off anything because of the fear of God of his opinion.

The best place to reach out to me is on Instagram at SugarMamaTV.

Good morning.

How are you?

We love our passive income.

I believe so.

Yeah.

But the way that you do it is most important.

Not necessarily that it is property or not.

It's not a black and white question.

I think the strategy, the approach, the ultimate goal has now changed with the federal budget.

Okay.

So negative gearing is essentially where holding an investment asset costs you.

So say I go and buy a million dollar investment property and I receive say $50,000 a year in rent, but I'm paying out $70,000 a year in interest.

is technically costing me $20,000.

Now, previously, you know, if I had bought that property prior to budget night, I'd be able to claim the $20,000 off my tax as a deduction.

Going forward, if I bought that after budget night, I wouldn't be able to claim that off my tax, assuming it's not a new build.

And even going forward with the new builds, it's actually quarantined to the rental income, so you can only actually offset that negative income

like cash flow negative against other rental income.

You can't use it to take off as a deduction off, say, your salary.