what is the point?, page-114

"Universal trader - In the instance of price stagnation would be willing to continue paying interest on your mortgage/s for little to no capital growth? Are you happy to service a debt of a few hundred thousand dollars in the hope of capital gains in 20 to 30 years? If you think there will be "price stagnation for the better part of the next decade" wouldn't you be better off investing your money elsewhere until such time that property experiences positive growth again?"

I don't invest in property for capital growth, I invest for the rental return - any capital growth can be considered as a bonus. All my properties are positively geared and the interest rate has no real bearing on that as my loans are primarily 15 year fixed rates so the major costs are well and truly contained. Given that my properties are positively geared they cost me nothing out of my own pocket - so basically in 20 to 30 year I will own an asset outright that has cost me nothing out of my own pocket. Furthermore rent will increase over the years further increasing my returns.

Also with respect to capital gains all my properties currently are in a poorer outer suburb area and the area is slated for rejuvenation over the next 10 years so while it is not my main focus the capital gains will come.

As for better off investing elsewhere well that is a personal choice and long term property is low risk with a stable return. As always it is good to invest elsewhere such as the stock market that is why I invest in spec shares - higher risk/greater return.