I think that you have made an interesting point there Hobo-jo. If and IF prices are stagnant, this would place pressure on some investors/speculators as the negative gearing scenario does require poperty to increase over the period of holding.
Agreed, negative gearing and depreciations and all of the expenses along the way go towards paying less tax but the nett result while holding this type of investment is still a loss and therefore not a good investment.
While property investors are investing, they are speculating that the price will forever increase. While I'm sure that along with myself many people on this forum have made money from property investing or flipping it requires the confidence in the investment or the speculation that the property is to increase in value while holding...
