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I'm bearish on property, so I'll give a more contrary view. :) I keep on hearing of IPs having a yield of 3% to 3.5% in the Sydney and Melbourne markets. Assuming being cashflow neutral requires a yield of around 8% at current interest rates (please correct me if I'm wrong), then a quick...

Buying a property on a 3% or 4% yield versus interest costs of (say) 7% strikes me as being a bet that prices will continue to rise ahead of wages or inflation over the long term. Properties aren't cheap on any metric right now, and long term studies (Schiller, Herengracht Index) suggest that...