property doomed look at graph, page-2

down or stagnate for a very long period which would be the far better outcome

But that graph highlights what is fundamentally wrong with residential property as an investment

It most achieve a return better than the CPI to be a valid investment

yet it needs to stay close to the CPI or at least real wage growth, which is often slightly higher to remain affordable.


Even this rubbish about a 2 class society developing, those that rent and those that own, does not stack up

If rental return growth does not match the property price growth, property becomes a poor investment due to a low yield

Yet if the rents grow to match the underlying asset price growth, they become unaffordable