Negative Gearing is to encourage people to buy property (that they may not normally) - so they can rent to people you want to rent. The question must then be asked - who buys purely for the negative gearing ... or is it an incentive and hopefully in a few years it will be postively geared ... I see it the same as salary sacrificing cars ... I know of people driving half way around Aust to get their miles up ... seriously if they think they are saving money ... spending to get a handout ... if negative gearing is the incentive to buy a house ... poor forthought.
