you are right in what you say, but thats not how it works.
and really isnt a relevent argument because:
-average mortgage is 9% and rent is 4% so you are running at a 5% loss at the begining (hence why you negative gear)
-its not untill the debt is reduced to half of the current value of the house you break even with rent
-you will only get 4% gain once it becomes 4% positivly geared which is towards the end.
