“In any event the main problem is that prices are too high by Australian and international standards. This means, for example, that institutional investors are reluctant to invest because their rates of return from rents alone are too low.”
Moon i think you are right but only to the point that the correction will fix things up..whether or not negative gearing goes or stays its not going to prevent corrections..but the fact that it does encourage some people to gear up means more hurt than otherwise would have been..and there's some nasty hurts on the way for some people in WA and QLD and eventually NSW and Vic i suspect..
"the solution for high prices is..higher prices"..
