One way to loosen up some of the shortfall in property is to halt any new purchases of investment property for negative gearing purposes. A lot of investors have built a large amount of equity in there houses and can afford to pay more because of the tax breaks negative gearing can offer an investor.
It would certainly help with a bit more liquidity in the markets, with investors looking for a new area to park their money. I cant see in 10 years the government still offering the same negative geared rebates to investors.
The downside will be that renters will face a lot more pressure in the search for properties. Maybe a way to ease some of the " housing shortfall we face in the future"
