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Old 19-04-2017, 04:35 PM   #12
b0son
FF.Com.Au Hardcore
 
Join Date: Feb 2005
Posts: 4,990
Default Re: Australia housing bubble

Pepsicobra, people dont invest in rental properties with a view to earn a steady rental income, they do so to get a capital gain. Being able to negative gear along the way removes a lot of the risk of speculative investing because the taxpayer effectively picks up the tab for managing your cashflow. And when you have limited supply but low barrier to entry, you inevitably end up with demand exceeding supply and price growth.
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