Yields of 7-9%, based on todays property values??????
LOL LOL LOL LOL LOL
YOU HAVE GOT TO BE JOKING
Perth median property price $430,000
median rent approx $340 per week a massive 4.11% yeild on the median property value
to get to 7% (forget 9%) the median weekly rent would have to increase to $578 or an increase of 70%
YOU ARE IN DREAM LAND
Compared to shares when a lot of bluechip stocks are yeilding close to 10% - RIGHT NOW not at some mystically predicted time in the future
and shares can be invested in at the bottom, unlike property which is either near or at its top.
And I know here comes all the ranting and raving about shares being risky and are going to fall further
Assuming there is not a wide spread hit to corporate profits and dividends then the current dividend yeild alone will ensure shares do bo fall much further
of course there is always a risk that profits could start taking wide sread hits and dividends cut.
Of course if this does happen it means we are in a significant economic downturn (you can not have one without the other)and if this is the case it does not look good for over valued poor yielding assets that require high levels of debt.
Not to mention the government has already stated they will cut immigration (the magic bullet that is supposed to save real estate values) if the economy starts to slow to much
