slumlords are a symptom of an ailing system, page-87

Damien don't waste your time they really don't get it and never will based on their comments. Our rents will grow and assuming our debts are not refinanced such that the loan amount is increased our "yield" will increase relative to our purchase price. Who cares what the property value is in the future - it is the properties earnings that pay it off and pay all the running costs.

In my example earlier in the thread the rent pays for everything right now so it costs me nothing to hold the property. Over time the rent will increase due to inflation etc and will pay more of the capital. Then in 25 years I will have an asset with no out of pocket expenses that will be worth at least what I paid for it in inflation adjusted dollars with a nice rent return.

The bears seem to primarily have a very short term attention span hence their obsession with ROI as their only focus is trading shares or property and getting a relatively immediate return. When I look at property as long as the property pays for itself and all its costs now or in the very near future the ROI is less relevant as you will be gaining an asset slowly with no or very little out of pocket expenses.

The most laughable thing is that the most vocal bears are always going on about how expensive housing is and the human cost. But "when" in their eyes the market collapses and they consider it cheap they will rush in an buy so that they can sell when the prices recover - so the reality is despite all their cries of the human cost they are only interested in performing speculative trades on property for a good fast ROI. There is nothing wrong doing that but it just shows the hypocrisy in their comments. At least as long term investors we are providing a service.

The other good thing about being a long term investor providing the properties are paying for themselves we can continue to add new properties to our portfolios for as little as a 5% deposit and this can be repeated over and over again - hence building more long term wealth.