You did your sums and you missed out. Why? Because it wasn't worth $1.35m according to your analysis. It sold for 17% above what you considered to be fair value. Nothing wrong with missing out. That is the problem in the current market, fair value has gone out the door and it's all got to do with capital gain. The time will come when fair value will re-enter and that will be the basis upon one's investment decision.
The question is what needs to happen to get fair value in the current market?
Answer: Price stabilisation or correction.
If it continues like it has been going for the last few years, rental yields will be in the order of 2-3%. Why would you bother.
