Lab Housing Policy and Negative Gearing, page-20

But nobody intentionally makes an investment to make a loss.
Negative gearing is a disortion in the market caused by taxation legislation.
Negative gearing is a subsidy assisting people in making investments in property that is not only completely unnecessary but at the cost to other tax payers.

Many countries already have provisions in their taxation legislation to prevent negative gearing including segregation of income into streams to prevent cross claiming of losses.

An alternative treatment would be to allow the losses accrued during ownership to be offset against any gains on disposal.