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Hi Ali, I don't want to take this thread off topic and into a discussion of other ways of timing the market but I think others have argued there isn't a statistically valid correlation between interest rates and capital growth. Personally, I agree with you. Hence my article and hypothesis...

Hi Ali, No it doesn't. Rental Reality just uses the current rental yield relative to the 5 year moving average to identify when to enter the market and how much to pay. It doesn't include any reference to interest rates. Cheers, Michael

Nope, you're spot on. I'm an economics 101 kinda guy myself and definately buy into the supply and demand argument. But rent is a proxy for demand. Its still property "consumption" but in a different form. As rental "prices" increase this is reflected in yields. The charts Steve has...

Hiya Tess, I forget how old I am sometimes and how many of these cycles I've witnessed, thanks for reminding me. ;) The late 90's was the consolidation stage for Sydney property before it boomed into the 2003 peak. It was a dark period where everyone told you not to buy property and that...

Can I just say that for Sydney, if I step back and look at it with squinty eyes, that the period 1990-1996 looks very similar to the current period 2005-2011. Just sayin' And we all know what the late 90's were in property terms and what happened thereafter. Cheers, Michael

So the moral of the story is that its a good time to buy in Brisbane! I could have told you that, I just did... ;) My only question then is why some small positive numbers up to about 5% are still showing as green as these would be an overvalued market relative to rental reality, albeit...

Hi Steve, They look good. How do we read the numbers though? They're clearly not the rental yields or even the relative change in rental yields or gap to 5 year average rental yields. Are they a percentage gap to 5 year average rental yield? i.e. -7 = 7% less than the average yield of...