"The worst thing about negative gearing is the way too many people think of it. ie That they're better off losing $1 because it reduces their tax bill by 30c."
Yes if that is the only reason you are doing it it is plain dumb. That said if you have a 10/20 year plan with the property becoming positively geared, with the asset price on average increasing at least by inflation over that period then you are doing okay. Of course the big caveat is the degree of negative gearing on the individual property in the first place.
