If housing was truly affordable there wouldn't even really be a rental market, and I think the political pendulum is starting to shift to the left on this issue.
Cheap money makes the current investment case very sound for property, albeit the rental income does not seem to be growing indexed to house prices. With such low returns locked in the low interest rates now are offsetting the loss, but what happens in 5 years when these loans are unlocked and where will interest rates be then?
What if the talk of negative gearing being abolished becomes reality, never been a better time for a government to squash it, would take very little political capital to do so and not such a bad thing.
I hold but have no intention of adding to that. The case for a correction, a strong one at that, makes it almost inevitable in the short term.
