Question 1

How does negative gearing reduce annual holding costs in Australia?

Accepted Answer

When tax-deductible property outflows (mortgage interest, council rates, strata levies, and Division 40/43 depreciation) exceed gross rent, this taxable loss offsets your salary, delivering a cash refund at your marginal rate (30%, 37%, or 45%).

Question 2

What is the difference between gross rental yield and true net yield?

Accepted Answer

Gross yield only divides annual rent by purchase price. True net yield subtracts non-recoverable operational costsâ€”strata levies, council rates, land taxes in Australia, or RERA Mollak service fees and chiller charges in Dubaiâ€”from annual income.

Question 3

How do RERA Mollak service charges erode Dubai rental cashflow?

Accepted Answer

RERA Mollak charges (10 to 35+ AED/sqft/year) are billed directly to property owners, not tenants. In prime areas like Downtown or Dubai Marina, service charges consume 20% to 30% of gross rent, compressing an 8% gross yield to ~5% net cash return.

Question 4

How does the UAE 2,000,000 AED Golden Visa threshold apply to mortgages?

Accepted Answer

The UAE scrapped the 1M AED cash down payment rule. Investors qualify for the 10-year Golden Visa if property purchase price on the DLD title deed or Oqood reaches 2M AED, even with a bank mortgage or by combining multiple secondary properties.

Question 5

How do state land taxes differ across NSW, Victoria, Queensland, and ACT?

Accepted Answer

NSW has a $1,075,000 land tax threshold; Victoria levies COVID debt surcharges above $50,000 site value; Queensland grants a $600,000 individual threshold; and ACT levies land tax from $0 unimproved land value on all residential rental properties.