Earning 5% is a trifle after inflation. May be wise if the stock market crashes of course but being happy with 5% hardly satisfies my 'learn how to invest' criteria.
However, some people that learn to invest well do many times better than the indexes. Warren Buffett also says he would do much better than his fund can do as a small lone wolf.
To be blunt landlords paying so much that the rent is only 3% are clueless and do not know how to invest. They deserve to lose money and probably will do so when the inefficient economy is allowed to correct itself. The raising of minimum wages still being insufficient to enable the rent to be paid says it all. Rent prices and job wage prices are unsustainable. Reversion to the mean WILL OCCUR.
In the short term we are seeing fast food chains and Uber eats etc closing down as properties have not corrected yet. In the long term as the unemployed queues grow and more and more rents simply do not get paid at all we will start to see rents and property prices become a part of the solution as well.
