re: property...all property is local
Billy, the reason that some suburbs breach the rent to value relationship, is that job security is risky, and therefore so is tenant stability and capital gain.
When I see a $200,000 property that rents for $300wk, I can usually guess that the town had one particular industry, like a mining town, and incomes are high, but nobody knows how long the mining company will last. So if jobs fall, everyone leaves town, rents drop and so do capital gains. Transpose 'mining' with any othe risky business like agriculture, tourism, etc. Not that any of these wonderful industries are to be looke down upon, only that a town supported by one industry alone is suspect for investing in. When a region has wider job stabilty and population, the relationship holds.
