rb85 wrote:Comparisons need to be made interest paid, maintenance stamp duty etc vs rent earned and increases.
Compared to interest gained or dividends paid and stock increases combined within the same period.
That's true rb85, but the biggest factor is the actual house prices.
With on average, doubling of house prices over a 9-10 year period, interest rates, stock and dividends have zero major factor.
Their stating house prices have dropped by 7 %, this is pure speculative forcasting on " historical increase % achieved, not actual current prices.
Property is a long term investment strategy, It wouldn't have made a damn difference with any of those factors on my last two properties, as the 10 year doubling factor blows those scenario's out of the water.
Property investment, is a long term strategy, personal home ownership should be treated the same way, You wont loose in the housing market if you stay with it with that long term strategy focus in mind and concentrate on debt reduction.
It's not a quick fix, but historically, you wont loose in terrafirma, despite the dooms day sprukers.
But, if your stretching yourself with investment properties, then yes, interest rates etc will come in to play, the answer there is don't invest if your stretched down to the last dollar, before the selling bell kicks in.
Never invest if your making your self prone to a slight shift in the money market, that could have dire consequences.
We have never invested and rented out, we have always lived in, renovated then moved it on when the market was healthy.
different strokes or strategies for different people but.....
col