Borrowing to invest 101
End of financial year is a common time for people to think about gearing – the potential deductibility of a year’s worth of interest cost can reduce your tax while borrowing to invest can boost your returns. This strategy is not without risk, however, and understanding the implications of both the strategy and the structures you use to implement it is critical.
End of financial year is a common time for people to think about gearing – the potential deductibility of a year’s worth of interest cost can reduce your tax while borrowing to invest can boost your returns. This strategy is not without risk, however, and understanding the implications of both the strategy and the structures you use is critical.
