property scams, page-27

re: property scams 4 cnrs program cdchi1 - what i meant when I said 20 years of capital growth built into current prices is that if the expected capital gain is 4% (being generous as thats more than inflation). and property prices currently being fundamentally priced double what their rental yields commands. It will take 18 years to reach the price they are at now. So I did exagerrate when i said 20. I meant 18.

IE real life example - a unit in my street gets a net rental yield of $9000 - its trying to sell for $284,000. BAsed on the rent it gets, its worth $128,500 - if you want a 7% return (worth even less if you wanted a decent 10%).
The $156,000 difference is the capital gains supposedly accruing over the next 20 years at assuming a 4% rate.

You probably think that I'm crazy suggesting that property should only rise at the most 2% higher than the rate of inflation.
However, even at this rate this would put the median price IN TODAYS MONEY at double the current prices in 35 years. This suggests that in only 10 years the average property will already be WELL and TRULY out of reach of the average wage earner.
I'm sorry but we dont have that big a shortage in Australia for that kind of thing to happen for at least another millenium.