what would happen if negative gearing was take, page-6

morning,

if negative gearing was removed - as it was before, then all else being equal, the same result would eventuate.


People stopped investing in residential rental real estate - why?

Because it is a very poor investment and cannot stand on it's own feet - it has to be supported by distorted tax instruments.


Why it was reinstated was because government couldn't take up the slack in providing low end housing - apparently only investors can do that - government is incapable.


So, we are stuck with an investment class that is poor return but enhanced so that when one makes an inevitable loss - tax can adjust for it.

It really makes dole bludgers look like productive citizens.

have a great day all

Pinto