Sorry to disagree Marty, but negative gearing is not always so negative in the ways you say. I don't profess to know the numbers across the board, but for myself and a workmate, we didn't take existing houses away from owners, we did provide employment and we did add to the available housing pool. We bought land, and comissioned builders to build a couple of houses that would not have otherwise been built.
Further, there are substantial financial risks along the way. For me, the first 10 years saw zero capital gains (early 80's). Recently there has been a bubble but it isn't always like that.
Certainly there are many investors who buy existing properties. But there are some who are not damaging the property prices.
I'm more concerned by the blind eye that's turned to foreign investors. I object to foreign ownership of property.