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It depends on your investment strategy. Decide what it is before buying a property. The two strategies are (basically): buy, hold and wait for capital growth, then sell; or buy and hold, gain income from rent. Yes, this is a far too simple description but the strategies come down to either...

It's also worth noting that after a year of -5% growth, then a year of +5% growth, we're not back to our original value. Original value = $100,000 Year 1 value after -5% = $100,000 - $5,000 = $95,000 Any subsequent capital growth is from the current value, not the original purchase price...

I updated the spreadsheet attached to the earlier post to add a row for inflation nd made the cash-flow match the OP's figures. The first column is Year 0 -- the starting point. There is no capital growth because you have just bought it. The rest of the columns (Year 1 etc) are the position...

The problem with a spreadsheet is that a number needs to be put down for the capital growth, and most people assume something like 7% to 10%. So the figures for holding on to the property look great. The reality is that right now there are few places around that are giving >3% growth, and...

You'd have to put in about $300,000 to make it cf neutral. You could get 5% interest on that $300k in a term deposit, so that's costing you $15,000 a year. In other words, as an investment for cash-flow goes, this property does not work. It's not working for capital gain either.