what would happen if negative gearing was take, page-63

Spot on Acorn - there was a time when trying to get an investment loan was an ordeal that came with an increased interest rate as a disincentive. Then it was eased , lines of credit and the worldwide trend to easy credit , low doc loans etc etc ignited prices more than anything else. Yes ng helped that along , no doubt but once the above and low deposits plus govt incentives were added it became a sport.

Those who believe the removal of ng will cause a drop in prices are living in la la land.So many investors have a ton of equity in the game.The assumption that most property investors are speculators is just not the case. It is at the end of the day a dull and boring investment vehicle for the long term could not be bothered with daily vacillations investors.