Investor: My fault for buying an overly expensive property

Twenty-eight-year-old Auckland property investor Tim owns one property that is negatively geared.

Each month, what he gets in rent does not cover the cost of the mortgage interest and repairs, rates and maintenance on the property.

At present, the sting of some of that pain is removed each year when he is able to claim a $2000 or $3000 tax refund.

The rental property's loss reduces his total taxable income, and means the amount he has paid in tax on his salary works out to be too much, so he gets a refund.

from
http://www.stuff.co.nz/business/98710346/Investor-My-fault-for-buying-an-overly-expensive-property