why property investing is for mugs, page-3

It's a good article commander and it exposes simply once and for all the scam that is property investing.

You are paying out your own money to hold an investment asset that you hope will grow by more than the cost, less capital gains tax at the end of the time you hold it.

It's a big ask when prices have already run up so far and fast in the last 30 years.

A lot of people including myself have made a lot of money through buying and selling property.

But the buy now and hold for the long term investment model is broken as prices are at multi-decadal highs and have a long way to fall yet, either by a big bubble burst or flat lining whilst inflation eats away at it's value.

Either way the capital growth required to pay off the negative gearing costs and the capital gains tax are not going to come from buying expensive property at the moment.

The gig is up. The trend has changed. It is broken.

Time to move on to other areas of investment.

NB - I would always recommend buying and paying off as quickly as possible a house to live in. It is great forced saving and gives you cheap shelter if you hit hard times.