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Thats true but that 50% equity for 50% LVR takes years to achieve even in a growth market. Unless of course you're putting in 50% deposit but if you can do that why bother with LOE. Also, don't forget cost of IPs on top of 8.5% interest. I allow 1.5% - 2% of loan or property amount for for IP...

To draw on the equity will cost you 8%+ of whatever you are drawing. Add this to negative gearing costs, rising interest rates and no or low cap growth going forward its obvious not many people can LOE. Unless they bought properties on great yields before or early in the 2000 - 2006? property...

That is a very good point Gremlin. Considering the mini boom happening in a lot of cities at the moment. No one is mentioning the increasing disconnect between growth and income of resi investment property. IMO The only way we can avoid a significant price fall in the not too distant future...