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Norm I think (not quite certain of this) that when L Bernham talks of using a P/E ratio he also is referring to using the current value of the property, not your purchase price. So the % would presumably be lower - and decrease further in a situation where CG grows faster than rental returns...

I thought I'd just tack on a comment here about media reporting & the reliability of trusting figures reported in the media. L Bernham supported his view that property prices would decline by 30% partially based on the fact that The Economist was reporting that rental returns in London are...

Yes thanks LB, I agree with Bill's point. No one should buy shares based on P/E alone. Many other factors come into play. Same with property. Timeframe is also a major factor - if you are buying shares to hold for a long period of time, P/E can be totally irrelevant - you don't do that...

LB, You seem to have missed the point again. That is precisely what Bill is asking - what are your reasons? And why pick the figure of 8-10%? Why can't yields remain low indefinitely? Cheers, Aceyducey

I agree with Brains here (quick someone provide CPR to Brains, his heart has stopped!) The average house in Liverpool is very different to the average house in St Kilda to the average house in Latham..... And when one area ages & becomes less desireable, another area increases in...

L Bernham, It's a simple matter of nettiquette - if you are writing something that gets personal, go away from the PC & come back 1/2 hour later. If you still want to post it - do so. BTW: you didn't post this in response to a post made with the sole purpose of demeaning you...etc as you...

Thanks L Bernham, I do respect your views, I just feel there are big holes in them :) Regarding the point above, do bear in mind that historic averages are not GOD. Just because it has happened in the past is not a rationale for the future to repeat it (thankfully!) I agree this applies...

I like this, it's the thought police card :) Note I ALWAYS put IMHO in my opinion posts, or otherwise qualify them. L Bernham, I can't tell when you're stating what your opinion is, as you have usually made your statements as if they were fact. Cheers, Aceyducey

L Bernham, can you provide a context for these figures? For example - 4% may well be below the average vacancy rate in the long term. So on that basis, the market is still booming. Provide the historic vacancy rate over the last 40 years & then it may be possible to draw some accurate...

Hi Choosy, Welcome to the forum. No need to be scared of being attacked, this only happens in situations where blanket claims are made without supporting evidence 9ie: "Yields will get back to normal historical averages ie 8 -10% " Please also bear in mind that L Bernham is also not shy...

Hi Olly, If my comments have been interpreted as a personal attack I apologise. That is not my intention, nor my desire. I do not believe new people entering this forum are in any way silly - or necessarily inexperienced or uninformed. However the most experienced investor can fall victim...

Lily House, No heat here - I'm just sincerely concerned about the posting of inaccurate and misleading information and of the view that this needs to be soundly disproven so that less experienced people reading this forum don't go away with incorrect or dangerous information that could cause...

L Bernham , You evaded the issue (as usual). So are you prepared to admit that you are wrong in your statement that there is an oversupply of rental properties in Australia - with the ABS statistics proving an undersupply of residential property nationally? Are you also prepared to...

Face facts L Bernham - you are wrong in your statement that there is an oversupply of rental properties in Australia. You are also wrong in your view that higher interest rates would necessarily push rental returns down. Calling these your opinion is fine - your opinion is wrong. Not because...

Handy, All the walls are in, it's tiling, painting & other odd finishing bits now - and most of those tasks I don't like doing at night cause of the light...even with halogen lamps - you always notice bits not done right by light of day. But I do hop on to the forum between jobs during the...

L Bernham, I've never known you not to be speaking hypothetically :) Let's go back over your posts... You predict a 50% across-the-board decline in property prices over the next several years (that you later adjusted it to a more optimistic 35-40% decline). This will either cause or be...