"amount of homeless will drop as rents fall back to normal and gov doesnt need to fund as many programs"
Steve70 are you serious?? Where, pray tell, will the homes come from that shall make the homeless homeful?? There is a whole breed of people out their who have an entitlement mentality. They think it is their god given right to have a house they can rent simply because they need one. Who will provide those home?? Not the government surely. Who in their right mind makes a half million dollar investment that will COST them each year rather than MAKE money. People still do though hoping for a long term benefit when the house is paid off. But take away negative gearing and much of the incentive to bang your head against a brick wall in this particular manner is removed.
I'm a afraid that if you take away negative gearing you will see a mass exodus from the housing market and a rental shortage and a rate of homelessness that will make your head spin. But if don't believe me then just ask Paul Keating. He owns a Tee shirt that says "been there, done that, ate humble pie and then reversed the decision".
