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Who ever decided to present that scenario to a lender like that is totally mad and would be committing financial suicide. You need to present to the lender "what they are looking for" in order to satisfy them of your ability to service a loan. There is more than one way to skin a cat.

Rents increase just like property values do. Its all relative to supply & demand ratios. In years to come I reckon rental growth with outstrip home affordability placing even greater demand on the rental markets. Australia as time passes will become like most the other European countries -...