cloudnine, serious question, why do you invest in property right now when by any indicator it is overpriced...this is serious!!! i just want to know, i can't understand how anyone would invest right now when rates are the lowest for 40 years, bound to go up and unemployment rising
for capital gains??? surely not, you could put your money in shares, like rio/bhp
for yield??? yield would be pretty poor as well
just say 400 buck rent on a 400k home
at 5% interest 20000 per year
at 400x52 = 20800
you are barely covering interest from rent...
i am just trying to understand why normal, intelligent people would risk so much, because capital gains must be minimal for the next 5 years or so compared to shares imo
