if the interest on your million dollar property is $ 70 000 per year on your average wage of 65 000, negative gearing is not going to give you your wages back...it will give you a % of tax back applicable to the bracket that you are in...in this case roughly 18-20 000 for you to live on...
then if the tenants give you another 20 000...thats 40...you still have to put in another 30000...where will you find that 30 000?
...missus has to roll up sleeves as well...
...kids ???
people often confuse 'negative gearing' with 'interest free' loan...
...and that's IF you own your PR outright ad if you don't need to eat or are happy with dodgy food (like some on this forum)...
so...whole family (+ tenants...ie.two families) is doing nothing else but working to pay off 2(two) million dollars to the BANK...and for the next 25 years...
