Negative Gearing Law and Legal Definition
Negative gearing is a form of borrowing money to buy an asset without receiving enough income from the investment to cover the interest expenses and other costs involved in maintaining it. It often occurs in rental properties, where the rental income received isn't enough to cover the interest costs on borrowings and expenditures toward property maintenances. It is a profitable venture when asset value rises so much that the capital gain is more than the sum of the ongoing losses over the life of the speculation.
