Neg gearing - Gone?, page-222

APRA and the RBA are concerned about the strong rise in the proportion of property investors in the housing market - they made up more than half of all new mortgages approved in September.

Negative gearing (ie. buying an investment to make a loss) is only supportive of house prices in a rising market. During a declining market no one will want to take a loss on investment income as well as a capital loss on the investment itself.

There's no need to abolish negative gearing. The market will bring an end to it.