the very nature of our taxation laws encourages higher leveraged property investment -- ie. negative gearing.
The term speaks loudly for itself ---------- NEGATIVE gearing.
If property were to be a conservative investment for working australians (which would be smart and which you sound like you are) ----------- we would call it POSITIVE gearing.
But, alas, we don't.
Why is that relative to Spain?
Because dinner table talk in Spain about property used to be exactly like Aussie property table talk during boom periods ----- exactly the same.
Now, there are some very smart and conservative property investors in Australia - granted.
But, alas, there are a hell of a lot of people who negatively gear --------------- and that is where one of the big risks is --------------- for everyone.
If properties that are negatively geared come onto the market in crisis -------- it will take the house of cards with it ------------ conservative investors included.
