Only 1 out of 10 negatively geared properties is for the construction of a new property. The rest is for the purchase of existing stock. The problem with negat

Only 1 out of 10 negatively geared properties is for the construction of a new property. The rest is for the purchase of existing stock. The problem with negative gearing in the context of a tax deduction on housing investments is that it encourages speculation by reducing the losses on bad investments. This is why we have such a disconnect between housing prices and rental prices.