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Hi Ali,Hi Steve, thanks for sharing -great info. Just checking, does your Rental Reality incorporate interest rates? I use something similar, but in timeline graph form, which is essentially gross rental return as a function of the standard variable interest rate.
Cheers Ali
Hi Ali,Thanks for the reply. That would explain why my results are quite different for Sydney. Surely including interest rates would give a better indication of the real cost of purchasing and holding housing relative to rental return and therefore be a better predictor of the best buying times?
Cheers Ali
Thanks for the reply. That would explain why my results are quite different for Sydney. Surely including interest rates would give a better indication of the real cost of purchasing and holding housing relative to rental return and therefore be a better predictor of the best buying times?
Cheers Ali
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 some years back here which argued the relationship between yield and interest rates as the best predictor of when to buy. But I like Steve's Rental Reality. In effect, they're all valid and should be considered in conjunction. Think of it as just another weapon in your arsenal.
Cheers,
Michael
Kieran Trass has done a lot of analysis along these lines.
Hi Silverx,is it ok if i can have for gold coast as well i know it's a dump but would be interested to see how the graph would look like
Hi Ali,Hi Steve, thanks for sharing -great info. Just checking, does your Rental Reality incorporate interest rates?
will you be conducting your Optimising Investment Structures courses around Australia again?
I credit where I am today from your course I attended years ago when you came over here to Perth.. Cash bonds sure did come in handy
Hi Stefan,
Hiya
Thanks StefanA for your graphs but please explain: what does the Y-axis really represent?
I don't think it reflects prices as anyone who bought at the peak of those graphs in 88/89 would still have done very well in 2000...
Does it represent "buying frenziness" or "heat" as Steve would have put it??