Amazing that there is always someone who does not understand that if negative gearing is taken away then there will not be enough rental properties. Investors cannot afford to keep their rental properties without the tax decuctions and even then the investors still fork out a lot of money each year as the tax deductions do not cover all the expenses. Without negative gearing the Government would need to provide the rental properties and this would cost them much more than the tax deductions they provide to the investor.

The other issue here is what then happens to all the properties that flood the market when negative gearing is abolished. Where would all the renters go? There will investors who cannot afford the properties anymore(and that would be a great majority of the investors). What if the investors cannot sell the proeperty? This could ruin quite a few people financially.

So we would have rental shortages, increased rent prices from the new investors who pruchased the properties(as there are now no tax deductions) and some investors goin bust.

And then of course there are the investors who are buying these properties to eventually fund their retirement.