Does negative gearing work anymore?

New data from the Australian Tax Office shows negative gearing is a great arrangement when interest rates are high. When rates are low, negative gearing offers only a minimal tax break.

The tax deductions that property investors are getting from negative gearing are shrinking.
A mortgage rate might now be about 5 per cent and the rental yield on an average property may be about 4 per cent, leaving just a 1 per cent difference.

Source: The Australian

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