Baron, there will be some rent rises, providing negative gearing for existing constructed rental accommodation is just inviting speculation not adding to the rental stock thats available for rental.
Yes when they do crash its a brilliant time to buy and if you've been around as long as you say and as long as me you know full well that Real Estate occasionally crashes. New construction used to take up 60% of investment property purchases not its lower than 6%, folks havnt been borrowing to build they have been borrowing to speculate
In the early 90s you could count both full incomes for a mortgage application and you couldn't borrow more than 75% of the purchase price, now you can borrow 100% and use both incomes on what was a low interest loan
Ive seen to major busts and yes prices drop like a stone I remember selling a house in Burwood Sydney in 89 for 326k and I it went in 1994 for 238k, I originally bought it for 63k in 1984 its now worth 1.2m it shouldn't be worth anymore than 450-500k so its 500-700k over valued
