Les, You need to buy close to water or close to a capital city. This is where your capital growth will come from. Yeild will also continue to grow as the shortage becomes greater.
I think everyone needs to remember that in the recession we had to have, unemployment hit 12% & rates hit 18% and what happened to property - it still more than doubled every 7 -10 years.
A lot of investors on this thread have lost lots of money & therefore are dark on everything. They can't understand how shares have droped by 50% & yet (if we look at the Adelaide property market for instance, last Quarter if fell by .7%. This doesn't make sense to them but they will keep on arguring not to but in.
I personally have many properties & am looking to buy another. In this market you can negatiate a good price & add value by renovations. Then if the market drops by another 1%, it really wont matter as you have created capital growth. Always have a buffer in case rates go again or for an emergency & when you have enough equity, go again.
It's not rocket science but it can be slow. Never sell as it is very expensive to trade property. Just borrow against it.
