- Gearing can be an effective and tax-efficient way of building your investments over the long-term. While it can increase your investment returns, you need to be aware of the risks involved.
Gearing is the strategy of borrowing money to invest. Just as you take out a loan to buy a home, you can also borrow money to invest in other assets, such as shares, property or managed funds.
When you adopt a gearing strategy, you are able to boost your investment earning power by increasing the amount of money you have available to invest. While investing with someone else’s money sounds like a great strategy (and it can be), there are risks involved, so it’s not suitable for everyone.
Find out how our Wealth Management team can assist you here.