I don't agree Michael, housing affordability while it would be affected by speculation to a certain degree, has been affected more by the fact that there was a severe under supply in the previous decade which is now only just being caught up in most state (Sydney still has a deficit of around 80k or so). When you also take into consideration that negative gearing claims has probably peaked, and is coming down now of its own accord, this argument also doesn't make sense.
If you ask me, it's not down to negative gearing, it's because we failed to properly plan in the 90's leading to a gap in the market, combined with a drop in wage growth over the last 35 years.
