Foreign investment is not a huge factor in Sydney housing prices, and even then it mainly just affects new stock.<p>Our tax laws create a huge incentive for large scale negatively geared local investment in housing, which means there&#x27;s a lot of people &quot;losing money&quot; in rental income in order to reduce their income tax. It&#x27;s an awful unintended consequence that no one has had the cojones to fix.