Vacant property

Hello,

One of my IPs is vacant at present. This is not by choice; the market is quiet at that location at present. It's been vacant for about two months now.

This will result in a significant loss on that property this financial year.

I vaguely recall reading somewhere that you can only negatively-gear a loss on an asset that is producing income.

As this property is not currently producing income, doe this mean we can't negatively-gear the loss on it?

Or do I have this completely wrong?

Thanks.

Vacant property