The shape of the negative gearing debate in Australia deserves to flex, based on the insights in the CoreLogic Regional Report for the March 2016 quarter.Choosing an investment property that produces a loss after mortgage repayments and other expenses is somewhat preposterous when cash flow positive rental yields are a viable option. The CoreLogic Regional Report lists these in abundance.Postcodes with notional rental yields that exceed the interest rate on even a high priced home loan populate the report.Coonamble, Cowra and Cobar won't suit all investors, but rental yields in these NSW towns of better than six per cent help frame thinking on what must be the much more common practice of borrowing against lower yielding dwellings in popular postcodes.Yields on Gold Coast units are at 5.9 per cent with Gold Coast houses at 5.1 per cent.Coolgardie and Kalgoorlie/Boulder are at eight per cent and six per cent.Ballarat, Bendigo and Geelong yields hover around the high four per cent level, one hundred basis points better than a keenly-priced home loan.If Australia is in the midst of a misadventure with its negative gearing culture, the attachment to high priced home loans is a feature of interest.And one more pointer to bank margins under threat.