"why buy a house where costs aren't covered and there's a capital loss?"
Because on a national scale the alternative of renting is more costly. From the report:
Aus Capitals Year on year: -4% Average Yield: 4.3%
Fact is, on a National Scale it is still more costly to rent than it is to buy. If there is going to be a transfer of wealth from current home owners to renters, obviously falls need to exceed rental yields long enough to cover the prohibitive transaction costs of selling.
In saying that though, it is hardly good news. Brisbane is getting smashed.
