A fair portion of the return on tax is not due to running large expenses at a loss.
It's the fact that you can claim depreciation and whilst your expenses may be greater than your income, the depreciation component will help to close the gap.
So whilst you may be paying out considerable money, being the difference between rental income and the expenditure involved with running the property, the depreciation can assist to close that gap.
So it's not necessary a bad decision to negatively gear, the other advantage is the expected capital growth from the property.
