• Sarah@lemmy.world
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    5 days ago

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    This time, Housing Minister Clare O’Neil gave the final answer to the question: Granny flats cannot be negatively geared.

    “An established property recently extended a free-standing house constructed through a knock-down rebuild, replacing an older, smaller free-standing house, a granny flat built adjacent to an established property, that isn’t eligible for negative gearing,” she said.

    • JayDee@lemmy.world
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      3 days ago

      What does negative gearing mean?

      Edit: just looked it up. It appears to be when one invests in something that is a loss in the shortterm and writing those losses off as a tax cut. Then when the invested item appreciates in value, you sell it for more than you initially invested. That way your able to make a larger profit by ignoring whatever losses up-front you would have incurred.