ASX 1.58% $64.41 asx limited

houses will never be affordable rba, page-18

  1. 298 Posts.
    the rental return on houses was always around 5% in the US It is now 3%
    sounds a bit similar here doesn't it
    the return is about 3.5% here

    the question is why are the returns so small

    rents have gone down ?
    No
    houses have gone up
    And what of capital gain, is it likely?
    Interest rates are about 8% and credit is getting tighter.
    Also property markets around the world are crashing.
    Is it likely that they will go up?
    No
    People who own investment properties are crying poor and that rents should go up
    How about price come down?
    That would be the logical thing to happen
    In anycase who cares whether people who own investment properties lose money?
 
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