'it's time to abolish negative gearing', page-16

The way I see it is that the NEED for negative gearing and the DESIRE to take it away are at cross purposes. Right now the government is scambling for money and so the topic comes up....the problem is everyone else is scrambling for money as well. Take away negative gearing now, when property value to rent ratio is unattractive and you will have investors leaving the market by the truckload and the government will be left holding the basket for the thousands of unhoused renters.....

If you are going to remove negative gearing the time to do it is at the bottom of the cycle when much of the property market is positve geared. The rent will be enough to attract some investors and the mortgage to rent ratio makes buying your own home more attractive. Removing negative gearing at this part of the cycle may see a more contained, sane housing boom with fewer repercussions for the economy later.....BUT......what government is going to do that?? By this time government has less need to scrape for cash because a booming housing market means lots of stamp duty, a booming building and banking sector. People start to use their homes like atm machines and the whole economy booms. The world is a happy place and the government of the day will take credit for your glee and will tell you never had it so good.....and the next government can pick up the pieces and mumble about removing negative gearing when it's too late.