Play2Win, I mean investing in a rational, non emotional way. Property has been a magic pudding for ages and I have benefited greatly. I have a great positive geared unit paying me > than 10% return pa with 130% capital gain since I bought it in 1992.
I have a house that I live in that has had some capital gain. I really like the house and have a mortgage on it of 300k. It would be cheaper to rent it, but like I said, I like owning it and am willing to pay the costs of ownership. I wouldn't sell my home just because it is losing value (which it is).
I wouldn't sell the unit because of cgt and the fact it pays itself off every 10 years.
I'd love to be able to repeat the cycle and buy another little money making machine. I have the cash and leverage to do it but for the life of me I keep running the numbers and it is not worth investing in property!!!! I am back in shares, cash and waiting for a possible property bottom. It is not here yet in my opinion.
Without capital gain it is is an immediate and continuing loss. It is a bad investment. I don't care about the arguments about "pockets". As I see it, prices are falling and if this is a fact only a fool would commit to a 5-10 year period of continuous loss, interest payments, opportunity and other costs.
Without capital gain, property has to fall to a level where there is immediate positive gearing before I go back in, or at least a level where the wait to possible gains will be only 5 or so years i.e the bottom. This is the case in the US where you can by units or even blocks of them and get positive cash flow.
