This is a pretty good debate with some interesting views.
There seems to be some confusion as to the time lines everyone is talking about.
I am personally talking about the next 5 years. There will be some sort of correction to bring in line vacancy rates and yield. The situation at the moment is out of hand and the warning signs are there for such a correction to occur. Investors looking at a 20+ year outlook have no problem, their investment will be worth substantially more then, particularly if bought prior to 2000. The investors looking for a quick buck in the next few years should get their head out of their ar@e and look around them. The capital gains of the last five years will not happen for you this time around. This is where the problem will occur, people will be faced with negative equity or a lifestyle they cannot afford any more and will be forced to sell. The low income earners will also be hit in a rising interest rate environment.
Let's all get our time lines in order when debating such issues.
