what would happen if negative gearing was take, page-2

It would lead to a lot of selling from people who over leveraged..

When interest rates return to normal, ATO is going to take a massive hit from the tax returns they will be paying the property investors..

When they do the tax review they always write in they should start to wind back negative gearing, it will probably happen in the future as libs have a lot of tax cuts to make thanks to labor and also with the reduced tax revenue they are collecting these days with the slow down.

housing is a huge bubble and there are so many pins that can prick it, it will find one soon enough.. we are not the biggest bubble but we are definitely one of the longer lasting..