Abolish negative gearing ?
Wait, haven't we been here before ?
About 1970s we abolished negative gearing and rental houses just went
pooff and disappeared.
The government could not cope and reintroduced negative gearing.

Is my memory on this intact ? I think so.

579....Before negative gearing the market was supplied by builders, building houses in between contracts. But then smart asses seen money to be made from investing in already established houses and now we have a shortage.

Yes, however, rents were commony about 10 to 12% of the value of the property.

Today, rents are generally about 3 to 6%.

So negative gearing actually helped keep rents down, as investors, although not enjoying the great returns, were able to claim their losses.

Can you imagine the outcry if rents were at 10 to 12% today.

You have to remember one very important fact that effects almost every decision made, that being, for every action, there is a reaction.

Be very careful what you wish for, especially if you are a renter,as rents would go through the roof when new houses are bypassed by investors, in favor of a more favorable investment.

That very subject is being talked about right now.
That may well be why there is a gigantic housing lot is being built by the vic govt; it says for needy people.
All the builders houses were returning was the mortgage money each month.
When that stopped, house prices rose and havn't stopped yet.
There are lots of unscrupulous investors around. And that makes it unfair for renters also, as seen on tv

579,

Your complete lack of economic credentials is blatantly obvious.

Firstly if an investor buys something to make a profit, he can write off expenses (interest) against the profit.

Secondly, if an investor cannot make a profit he won't invest in buying or building houses. Idiots have stopped negative gearing only to have to allow it again later.

579, another reason investors buy houses is that banks usually don't mind lending on bricks and mortar.

As for being unscrupulous Investors, I forgot, we were supposed to be a charity.