Gearing simply means to invest with borrowed money. It can be a powerful means to build wealth as it allows you to acquire assets that you wouldn’t otherwise be in a position to own. One of the gearing strategies you might have heard of is using the equity in your home to buy other assets such as shares. You can either positively gear or negatively gear.


  • Enables you to undertake a higher level of investment than may otherwise be possible.
  • In favourable market conditions, your earnings can be multiplied.
  • Generally, if the cost of borrowing exceeds the income generated from the investment, this excess is an allowable deduction.
  • If you borrow to invest in shares you may obtain imputation credits which can be used to reduce the amount of tax you pay.


  • An asset may not provide the expected return.
  • The market conditions under which you are borrowing may change. If you over-borrow, rising interest rates could restrict your ability to meet the loan payments.
  • If you rely on the income from the investment/s, there may be periods where it produces little or no income, or even losses.
  • Gearing can multiply your loss.

If you think a gearing strategy might work for you, contact us to book an initial consultation.


"Lynette and the team from ActonAdviceGroup have helped us to invest in our financial future through a well-managed gearing strategy.  Lynette really takes the time to understand our financial goals and our individual situation. We have received quality advice with a high attention to detail which is helping us to achieve our financial goals. I would not hesitate to recommend ActonAdviceGroup and have done so already."

- Nicole Brown


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