Quote:
Originally Posted by b0son
Pepsicobra, people don't invest in rental properties with a view to earn a steady rental income, they do so to get a capital gain. Being able to negative gear along the way removes a lot of the risk of speculative investing because the taxpayer effectively picks up the tab for managing your cashflow. And when you have limited supply but low barrier to entry, you inevitably end up with demand exceeding supply and price growth.
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I'd have to disagree with that point B0son - I know I have invested for the income stream that my properties provide, as have all my friends.
But you may be right nowadays, maybe the focus has swung too heavily on speculation of gain from price increases.