Removing negative gearing is something that would hurt just as many people as it would advantage. I'd love to see it gone for my own personal interests but any government touching it would have massive massive voter backlash that would not be forgotten for a long time.
The housing market here at least in Sydney anyway will never collapse, you see retraces of maybe 10-15% if rates rise but it will be nothing like the US where ghosts towns were created due to industries disappearing almost overnight.
Concerning for me was recent stats saying interest payments had risen from 6-9% of peoples incomes. Now given rates are at all time lows this means people are borrowing well beyond their means should rates increase a pip or two. Personally I don't see rates going anywhere fast in either direction. The RBA won't increase rates because they are trying to keep the Aus $$$ in check but similarly they won't reduce them as they are hesitant to fuel the housing market any further.
