Interesting reading Steve. Whilst I do not necessarily have the same investment strategy as you do, I like to read your articles to offer a new perspective on investment strategies.

My investment strategy is to invest for capital growth, where cashflow comes a very distant second. The reason I mention this is that I think it has relevance to your article.

Yes, I agree the market sentiment for property is driven predominantly by the media. Investor activity has slowed considerably. I for one cannot understand the logic of this – the government is offering a free $7000 to first home buyers, there are some good stamp duty savings to be had for the same people, interest rates are still low by historical standards, and there are some good tax advantages to property investment. So as an investment class, property has not changed per se; it is only the buyers that have changed their understanding (or lack or it moreso).

However the impact to me as a capital gains investor is huge. But I cannot see what impact this has to you on cashflow for example. Why wouldn’t you lock in interest rates for a 5, 7 or 10 year term if you were worried about rate rises. Rates for these terms are very competitive. Plus if you are a wrapper, you pass on rate rises anyway.

Also interestingly, I note many of your strategies seem to be moving towards growth models now.

Either way, I look forwards to reading more