Negative gearing is a practice whereby an investor borrows money to acquire an income-producing investment property and expects the gross income generated by the investment, at least in the short term, to be less than the cost of owning and managing the investment, including depreciation and interest charged on the loan (but excluding capital repayments). The arrangement is a form of financial leverage. The investor may enter into such an arrangement and expect the tax benefits (if any) and the capital gain on the investment, when the investment is ultimately disposed of, to exceed the accumulated losses of holding the investment.
It seems like a simple question but it’s a researched fact that price isn’t the reason behind most purchase decisions. There are many reasons why we buy a product or service. These include habit, prestige, loyalty, past experience, recommendations and reputation.
As a customer I often ask how much, and I expect a simple answer. Yet In business I often stumble when answering that question when asked. It’s not that I think we’re expensive, nor is it that I don’t know the answer, it’s because I want to explain so much more; what we do; what we stand for; how we solve problems and what is the real “value”. There are lots of cliché’s that come to mind like “You get what you pay for”; “expensive is not always better”; “cheap doesn’t mean bargain”, but they lose meaning after a while. Like most businesses, we survive on our reputation and most of our business is by referral. We are very happy when we receive referrals because we know we have done a good job. Nowhere in any price quote can you see what is actually fully included, you can only rely on yours, and others, experience.