the only reason they won't abolish negative gearing is that the politicians own a ton of negatively geared properties.
Negative gearing has NOTHING to do with availability of rental properties. The UK (and most of the rest of the Western World) has no negative gearing, and there are plenty of rentals.
Dargie is right. Most Aussie's can't see the problem. Their experience in property extends an entire 25 years - which is a small amount of time. As dargie's reasoning suggests - there will be a nasty property crash in Australia (and NZ).
Australia doesn't have the 'sub-prime' problems of the US. Aus and NZ have a property bubble which has inflated by other things including tax incentives. - Sub-prime is part of the prick in the bubble - it caused higher lending rates. - The real burst will come with lower debt servicing capability from working families facing high food and fuel inflation. - The fate will be sealed when more homes in negative equity situations are auctioned off by banks.
WA and QLD will be most highly buffered for now, but they will see a fracturing of society - the battler is back!
Joel
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