Investing in residential property, reinforced by borrowing, has historically been a favoured path for Australian families seeking to accumulate long-term wealth.

‘Gearing’ enables an investor to manage a high-value asset with a modest initial deposit while maintaining full entitlement to Capital Gains, rental yield, and all related tax deductions. This principle is universally applied by entrepreneurs: utilising borrowed resources to acquire an asset, produce revenue, benefit from tax incentives, and foster capital appreciation—while investing merely a portion of the asset’s worth initially.

Since investors who utilise leverage only pay interest on the borrowed sum, those interest payments are eligible for tax deductions, along with the other operational costs associated with the investment property. In the interim, the asset yields revenue via rental income (which has shown a tendency to increase over time), fosters enduring capital growth, and provides substantial depreciation benefits for many years.

A considerable number of Australians understand that depending solely on superannuation might not ensure the financial stability they desire upon retirement. Meticulously chosen residential investments—particularly in robust metropolitan areas such as Sydney—have consistently demonstrated a history of generating both yield and growth throughout various economic cycles.