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Can't borrow at 95% LVR on a bank stock because of margin calls. Minor movements will trigger margins, as happened in 2008. But when the Double Bay mansions dipped in the same time, people rode through it even at 70% LVR and here they are again.

If you have a good investment thesis and you've done your numbers, then even if you lose, so be it. Obviously different if you're just buying for the sake of buying properties. Just had a friend buy another investment property on 95% gearing - she doesn't even know what yield is.

Agreed. He's ignoring the rental component, which goes up over time too. So eventually your rental yield as a % of your purchase price is a lot more than 5%.

Well not sure if it's just that (ie your thoughts) or you've looked at it. In any case I don't think the rise in pay cheques (if any) are catching up to the jump in prices. I was just reading one of GS's more recent economics update (suspect it was 11 March, if you have access). One of the...

If prices go up because people's standard of living and desposible income is improving, that's great. Not the case here.