great post EuroTravelLover I am a novice with regards to taxation laws.
As to "Just remember if you knock out property investors deductions you would also see most share investors who borrow have their interest deductions knocked out as well."
I have no problem with the either, i do use margin loans occassionaly, in my books negative gearing should only be allowed on new property ie just built and maybe depreciated over 10 years.
I think we should keep negative gearing for real investment purposes that actually produce things like farmers miners etc but dont think the current setup does anything expect give speculators more leverage. The result for the sharemarket has been the added volatility and for the property market has helped create the conundrum we are in.
