Have a read of this artical from The Age, it raises a good point, the more interest rates go up, the more the goverment loses in tax revenue. to the tune of $billions each year due to all the prop bulls negative gearing.
The goverment also wants to stop Interest rate hikes as it makes them look bad and they lose votes.
you have to wonder if the goverment may choose to remove negative gearing again, no other country has it, and they have removed it before.
If they did this, it would create more tax revenue, it would also lower interest rates as property would stop booming from investors which the RBA is targeting making them up the rates, and it would also upset less people as there are more people on normal moretgages than investors.
I think its a real possibility the prop bulls may lose their negative gearing before too long. And boy wont that kill the price of housing!
