"But in any case, if you continue to hold the property for the following 10 years it will definately provide a solid income stream in conjunction with strong capital growth. Count on it."
All investments have risk, you cannot count on anything. Maybe your scenario will play out, but work out the risk vs reward, don't just count on it.
"i'm always hearing you cant have good cashflow AND capital growth"
Most likely because if it sounds too good to be true, it probably is. Don't you think every man and his dog would be in on it if it were that simple. That is exactly what has been happening in recent years, though how much it's been overdone is hard to say.
"that the government does stimulate our economy to minimise the impact of the world economy problems and effect strategies that allow homeowners keep there houses"
Owner occupiers aren't the ones at risk here, interest rates dropping leaves them in an excellent position regardless of where house prices go. Having inflated property prices is part of the problem, being detrimental to the efficient operation of the economy. Unless our economy shows unexpected strength, I don't see it can absorb the costs of high rentals (both on commercial and residential front). Still, crazier things have happened in this market.
