Property bulls Holding property vs not holding should be looked at a decision made today. I think property is expensive now, does not mean k though that in 2001. The point is today is property a cheap or expensive asset class. One needs to look at entry costs ( stamp duty ) holdings costs , insurance, agents fees , maintenance etc ) and yield ( rent ) when all these things are included and the entry cost is ammortised over agiven period ( ie 5% stamp duty becomes .5% less return if held over 10 yrs) then it becomes painfully obvious that property today is an expensive asset class. As for tax deductions - all you are doing is sharing you loss with the govt. Finally when its time to sell - get ready to pay the agent 2 % and give some of your gains back to the govt in capital gains tax. So even though you have made an income loss of 2-3 percent for the capital value for the last 10 years , if you sell and you property has gained 30 percent value , you give some of that up. When property is looked at objectively today - for new purchases , it is expensive relative to history, compared to global prices, based on yield , based on affordability and really any measure one cares to use.
