So goes the theory. But here is the practice. Typical investor bought house 5/10 years ago - paid $200,000 or thereabouts, now worth $400,000 plus.
Loan $200,000 still.Rent roughly $180pw, rent now $360pw. When purchased house negatively geared and affordable according to bank criteria, now positively geared, and maybe off fixed rates and less positively geared, ie make less money - not lose more.
Have one off those , but house now woth $800,000 and rent $450.
If a person bought too high he would have had to buy in the last 2/3 years and would still be affordable, he would be on a higher rate which was affordable according to bank criteria.No issue. Anyone who bought before then made capital and has increased rental income.
Your posts show you have a lot to find out unfortunately .
