Agree, and the problem is not debt necessarily so negative...

Agree, and the problem is not debt necessarily so negative gearing is fine, it is the actual asset value so the tax needs to be on the value of the house linked to the value of the loan.

So people might negative gear a loan off their income but they get hit with a property tax that directly is a prorata rate of the value of the property separate to income generation.

In this way past beneficiaries get captured to as they pay property tax on current market values whether they have a loan or not and its directly linked to price and therefore affordability for those looking to find a house to live in!!

Landlords pay interest and property tax so rents must go up even without a loan and if the renters can't afford market values and rent must come down with house prices!!!

See at the moment governments are in debt because they have not collected taxes property reflecting absence of property taxes which is feeling property speculation so asset investment begin to reflect utility returns again!!