Agreed. However the proportion of speculators on IO loans purchasing just now is very low.
There's SMSF, overseas investors, FHB, and of course the mum&dad purchasin their first investment property.
As with anything higher prices will squeeze everybody to some extent but to suggest it will cause a crash (implied or directly stated as this thread has done) is just plain stupid.
I may as well start a thread asking if renters can afford a 50% increase - it would be just as stupid.
