Quote from: RoadTrain on October 11, 2014, 10:26:46 AM

Quote from: jubalix on October 11, 2014, 01:47:39 AM

Quote from: RoadTrain on October 10, 2014, 12:25:37 PM

Quote from: scryptasicminer on October 10, 2014, 08:26:40 AM

From investor perspective, rental yield going down alone is not the primary factor of concern.

Let's say you buy a rental property, and get 6% yield a year. After 5 years, you already getting back 30% of the capital.

A 30% price correction will only set you back to square one and you are still getting return back every year in the form of rental. 10 more years and you will most likely be ahead of the game in term of profitability.

It's might be a good investment until it isn't. So it wipes out all of your rental earnings of the past 5 years.

When you see the prices being that high I don't think it's wise to invest any more. In fact, I'd be divesting instead. Because when it pops I might not be able to sell fast.

but i still have somewhere I can live, versus say bad share investment.

Yep, but if we talk about proper money management it's a weak excuse. Sadly, no good asset is able to provide a good yield right now because of low interest rates environment.

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Are you talking about houses or Hashlet Primes from your sig? Better sell that account before the bubble pops!

Yeah, lol. But my account is not an investment anyway, so nvm Cheesy

Sydney houses have returned 60% over the last 3 years, tax free if you live in it. That's pretty good return.

Quite a few suburbs have done 30~50% in the last year alone