The ideal benefit of this is that the property goes up in value and you get more capital gains than you spend in expenses. Then you can also get a tax break in most circumstances from those expenses. When you’re losing money, you can offset this against your taxable income. Negative gearing can be a good idea when you have enough disposable income to afford the property. This means you’re probably earning a decent wage and you have enough disposable income that you can afford to hold the property and pay for the losses without going deeper into debt and without running into cash flow difficulties.