RP,I disagree totally. Rising interest rates hurt investors as...

RP,

I disagree totally. Rising interest rates hurt investors as they do first home buyers.

When you boil it all down, the best thing that could possibly happen for first home buyers is a property crash. This would damage everyone else, but affordability would be allowed to adjust. Eveyone beats around this particular bush because it's politically inpalatable, and for self-interest.

Furthermore, rising rents is a sign of decrease in investor activity, not the other way around.

Birdbeak's comments are also very valid: it's not only about geared property investors. There are much bigger concerns than speculators who have borrowed too heavily.