if house prices rise enough to offset the loss

Generally, an astute investor wouldn't buy a negatively geared property if the potential for growth wasn't there though.

That's the problem though, every man and his dog wants to be a property investor these days.

I'm bored at work, so I thought I'd work out what return you get on a property base on the australian average house price rises

Year bought Average annual rise to sep 2012
2002 6.4%
2003 5.21%
2004 4.85%
2005 5.40%
2006 4.75%
2007 3.62%
2008 3.82%
2009 3.05%
2010 negative
2011 negative


you can look at that two ways, investments work out in the long term, or the good days are over. I believe the 2nd.

Or the best days are still to come?

Personally, I wouldn't touch property as an investment at the moment, not becuase I believe it's a bad investement but mainly because it doesn't suit my circumstances at this point in time, my spare cash can be working better for me in other areas at this point in time.

From frequenting the property forum at Somersoft though, there a still plenty of people making a motsa on property even in the current climate.

I do agree though, once upon time it seemed anyone could go buy any old house and not fail to make a bundle, can't see that happening at the moment. Will it again? Who knows.

Buy a wreck .... do it up .... Australians love glossy, shiny things .... easy pickings

We just acquired our office for $900k instead of paying $90k per year
Across the road (literally) a house recently sold for $1.2 million now leased at $800 per week.

Both sales took place in November
Both properties clean tidy and relatively new (2 to 5 years old)
Both relatively in same price bracket

Just one was emotive, the other numeric