Seems unusual I have Westpac contacting myself offering funds for further property purchases. QE= suppressed interest rates. And with many baby boomers looking for fixed interest, and in a world of low growth Australasia with a growing population and some of the highest interest rates in the Western World looks like a safe bet. These diatribes that bears write, are based on what ought to happen in a world governed by Austrian economics. However, what ought to happen usually doesn't happen in the real world. As theories are only theories. There are too many unknown unknowns. All I know is that inflation makes the Western world go round. As billionaire Frank Guistra said in an interview late 2012, he will always bet on inflation. As he states it is incredibly easy to become wealthy with inflation, and those that have power will always ensure inflation. He also said in the interview that people would not believe at how low the interest rates are he is being offered money at. So quite simple bet on inflation, that will push up the cost of land development and house and construction and with time rents. Interest rates will bounce around 7%, rates/ insurance/ maintenance will be linked to inflation. So 80% of rental property costs will be fixed, while 100% of revenue (rents) will be linked to inflation. And within 10 years most rental properties will be cashflow positive.
