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@loo The apartment you’ve bought is unlikely to have significant capital gains (you acknowledge you overpaid + apartments don’t grow quickly in value), but you enjoy living in it. Why don’t you buy a house with an investment property loan, live in it for 6-12 months and then rent it out. By...

@mcarans Yes, adjusting property prices is important when considering affordability, but it shouldn’t be used when trying to estimate returns over 10 years. In many circumstances, it’s possible to generate significant returns with property even if the asset has negative real returns. This seems...

@nailz I just used that as an example for why you can’t look at inflation adjusted returns for property. It wasn’t meant to be an accurate example. But a good example of how property can create good returns is mine. I bought my investment property on a 95% LVR in 2019 (pre-election)...

@mcarans You shouldn’t look at inflation adjusted returns for property because most people leverage when they buy property. If inflation is 5% and house prices rise 5% in nominal terms, then the real increase is 0%. However, if I took out a 95% LVR mortgage (and assume that rent covers the...