When I read that post in utter disbelief I started to write a respond and gave up as there is so much to be said.
Those so called losses do not take into account inter alia
1. Depreciation , if one claims it , that is not a cash payment. 2. Amortization of entry costs over 5 years 3. ATO not following up incorrectly claimed amounts owing to lack of comprehension of deductions by investors , hence their constant letters. 4. The rollon effect of borrowing to fund the next IP. 3. Say a borrower loses $3000 in cash , he thinks , like many in business - I had the capital paid off by my tenant go down by $5000 with the bank, the place increases in value by $10,000 pa on a small capital layout so I am still $12,000 in front and have greater borrowing capacity and losses offset against income if a high earner.
And on and on it goes. I sure as hell would not make the posts he make assuming things on a subject which quite obviously he has no clue about. Quite embarrasing to say the least.