Negative gearing
Negative gearing is a financial leverage strategy whereby an investor borrows money to acquire an income-producing investment, knowing that the gross income generated by the investment (at least in the short term) will be less than the cost of owning and managing the investment, including depreciation and interest charged on the loan (but excluding capital repayments). Investors may choose this approach expecting an overall reduction in tax in the short term, if a loss on a negatively geared investment is tax-deductible against other taxable income.