I have read and read again many times that average rent is linked to salaries and CPI. Fair enough, it is not reasonable to expect average rent to rise much above 30% of average household income.
But is this true for individual properties? Eg. average house prices have risen on average 3% above CPI for the last 40 years or so, but am I reasonable to say " Rent on an individual properties should on average be expected to keep pace with capital gains when considering buying and holding for the long term of 10 years or more?".
But is this true for individual properties? Eg. average house prices have risen on average 3% above CPI for the last 40 years or so, but am I reasonable to say " Rent on an individual properties should on average be expected to keep pace with capital gains when considering buying and holding for the long term of 10 years or more?".