Grant Clifton

Yeah.

And, you know, otherwise you get yourself into the situation where your ute's depreciated faster than what the loan balance is.

Yeah.

And four years down the track, you still owe 20 grand on your ute and it's worth 10.

Yeah, fuck it, I think.

You know?

Or you have a prang and you're not insured and, you know, how many times have I seen that?

I'll tell you what, in Aussie here, I mean, you've got some of the best sort of tax advantages as well when it comes to property.

So if you're a FIFO worker or you're out working in the mines, truck driving or whatever, and you're earning a couple of hundred grand a year, you know, your biggest expense out of your income is going to be your tax bill.

Right.

So wouldn't it make sense to be able to offset some of that tax bill?

I mean, you've got salary sacrifices.

You can do that.

Sure, you can use some of that to pay your mortgage or buy a car or whatever if you're one of the bigger mining outfits.

But the biggest one at the moment, whilst it's still there, use it, is the negative gearing on property.

So start putting aside and buy a rental property somewhere, negatively gear it, and the amount you can save on your tax is quite a lot of money.

So negative gearing basically allows you to run your rental property like a business.

So let's say you buy a rental property for half a million dollars and you're renting it out for $500 a week.

um the interest cost on that at say six percent you know might be 50 grand a year um and you've got other costs such as your rates and insurance and stuff well you can basically claim back that interest and um deduct the rent from it and if if there's a loss

After you've taken the rental income and the interest cost and if there's a loss showing, that loss can come off your personal tax.