"Misconception 1: Investors who use negative gearing charge less for rent:
Misconception 2: If investors sell because negative gearing is removed, rent will go up: "
Agree negative gearing will not lower rents directly - however having more investors means there is more competition through having more available dwellings for rent. Take it away and there will likely be upward pressure on rents for a period of time. Secondly if it is removed then other investors may no buy and no matter what no all people will be able to afford or will want to buy. So it is a myth that if prices do lower that all people will just buy rather than rent.
