"Too many people (approaching 2 million investment properties) for the wrong reason (negative gearing) are maxed out neck-high in debt to buy investment properties." Ok I will take your word for it that there are 2 million investment properties out there. However the VAST majority would not be negative geared.
"They will be the first to bolt when first they realize prices aren't rising and then the risk of price falls, then when prices actually fall (they are in disbelief - house prices are supposed to rise 10% a year) and they followed the herd down the abyss." Again making large unsubstantiated assertions - again a very large portion of these rental properties would be long term owners and would be making more than enough money off of their rent to pay for their properties. So they have not need to sell, even more-so in a market that you proclaim will be down allot.
"Couple with massive foreclosure of FHBs and other mortgagees who can no longer afford to service their mortgages given if the RBA lift cash rates to 5%, it's a 67% increase in rates since October, you have one certain outcome." Again making a large unsubstantiated assertion - rates were quite a bit higher only a year or so ago and most managed. Those that have just entered the market are not as stupid as many of you think and have factored in interest rate rises.
