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the more I think about it, the more a partially capitalised IO model would work - a low cost funder with cheap overseas money, half the cream on top for operating costs and the other half deferred income. No end to the loan term. (may want to cap it to 120% LVR or 2 generations??)...

yes but the monthly amount can never be less than the interest. unless you get a new product that starts to capitalise the interest as well... hard to see that working for any lender but never say never. It's not that far removed from a reverse mortgage, however they basically eat equity...

how does a generational loan help? that is for loan term, not loan amount.

yes it does - no subsidy, no bonanza no investor, no renter but not on the rental market not sure where you are going with this?

the ATO / treasury disagree... the mulitbillion dollar tax bonanza as it was so aptly put. doy ou seriosuly think rents would be this cheap without it? ignores economic fundamentals - if there is a price disparity between existing and new, people will buy new. TIC recomends new by the way...

"I'm tired of explaining to my peers how negative gearing works, and then explaining why allowing investors to speculate on the housing market is to the detriment of our generation" how does he figure that subsidised housing is to his detriment?

are you suggesting the author signed up here to generate more publicity? seems a bit of a stretch