Rents have risen in line with wages, but prices have jumped because of high debt levels. I don't think that negative gearing keeps rents low compared to prices. I think rents are where they should be and negative gearing allows investors to service a higher debt level and hence push prices up.
When Keating brought back negative gearing in 1987, did rents go down, or did prices rise?
PS landllort = anagram for land troll.
Rents went down - the reason Keating brought negative gearing back in 1987, was that when is was abolished (only a year earlier) - rents skyrocketed!!
Cheers,
Jen