The argument makes sense to me. This is a problem in Australia that is exacerbated by the tax write-offs investors get in the form of what they call Negative Ge

The argument makes sense to me. This is a problem in Australia that is exacerbated by the tax write-offs investors get in the form of what they call Negative Gearing. My possibly flawed laymen's understanding of it is that for each property owned in addition to your primary home, any losses incurred through the ownership of these additional investment properties can be claimed as a tax write-offs. Couple this with short term interest free loans and a continual rise in prices (a trend that may be disappearing, at least temporarily) and the ability to leverage the home you already have, then you encourage speculative investment. Buy now and sell higher in a few years. It's much harder for first home buyer's to break into the property market by the very fact they don't own property to leverage in the first place. And this isn't necessarily something only particularly wealthy people do. It's become ingrained in Australian society to treat housing as a financial asset and use it to generate wealth. The problem is if you don't already have one, or substantial means to acquire one, you are at a much greater disadvantage. I only have my own perspective to rely upon after trying and failing to buy a home a few years ago.