Negative Gearing Only Works If This Happens

Negative gearing only works if the asset increases in value over time. While existing rules for current investors are being honoured, future changes may affect new property purchases that aren’t new builds.
The key point is this: if you’re losing money each year on an investment property through interest, insurance, and maintenance costs, the property’s value needs to rise enough to make it worthwhile.
The big question now is whether the same factors that drove property prices higher in the past, especially rising debt levels and borrowing capacity - will continue in the future, as there may be limits to how much debt people can afford to take on.