Common to get yields in my area now over 5% and IR's are 6-6.5%. No tipping point happening yet mate but if we get another cut or two and vals stay put then your hypothesis will be seriously tested. It will be interesting to see whether the new grant announced in NSW will bring FHB's back with the 2% differential broken already. There are already cases where some lower val homes around my neck of the woods would have yield on par with IR's. Interesting times.Yields are too low at present but are set to take off with income increases and high inflation on the back of the mining boom phase II. Prices might take a breather for a year or two before that rental yield hits the tipping point. I've posted my tipping point hypothesis before. I reckon a two percent differential between prevailing interest rates and rental yields sees tennants become buyers. Today yields are 4.5% and interest rates 7.5% so the gap is too large for now but will close in time.