Couple of observations with this debate
1) Often people say rent increases with inflation and assume property prices rise more than inflation. Can you have prices rising at say 8% pa and rents at only 3% pa over the long term? I don't think so. Either real rents will go up or real prices down over the longer term to bring these two fundamentals into line. Yield.
3) Anything the RBA says do the opposite. They are just trying to jaw bone the exuberance out of the property market.
1) Often people say rent increases with inflation and assume property prices rise more than inflation. Can you have prices rising at say 8% pa and rents at only 3% pa over the long term? I don't think so. Either real rents will go up or real prices down over the longer term to bring these two fundamentals into line. Yield.
3) Anything the RBA says do the opposite. They are just trying to jaw bone the exuberance out of the property market.