TGM, "not paying dead money in interest" - I like that one.

It's costing the landlord 10% in costs(interest 8%, other costs 2%) to rent at a 5% gross yield. Pay rent of $300pw and the landlord is effectively giving almost $300pw to pay for the tenants petrol, restaurant meals, bar tabs, winter holidays to Queensland, etc. Alternatively for all that dead interest money one could rent a far superior place than that $300,000 house.

When the yields get to 8 -10% again then start buying the investment properties.