Quote Originally Posted by artemis View Post
What you may have missed is that paper capital gains don't pay the bills. And if they are crystallised, buying in the same market isn't going to pay the bills either.
Assuming you never sell or if you do you only roll over your investment.
Much like commercial property I suppose the rise in capital value is used to justify an increase in rent without any additional benefit being provided. Don't get me wrong I am not anti landlord. I had tenants who every christmas stopped paying their rent probably due to overspending and holidays. I assume they thought we were wealthy landlords rather than a young couple trying to get ahead and pay the mortgage. Very stressful as they would catch up only to get behind again.

But due to what seems to be ever expanding credit availability and constantly lower interest rates over the last 30 years asset owners have been big winners, yet to hear the bleating when legislation to provide insulated housing came in (I thought heat pumps were a step too far) you would think their throats were being cut yet no mention is ever made of the wealth generated through central bank policy for the past 30 years. It seems a little one way sometimes. Pass on the costs keep the capital gains. Mind you at the yields rental properties are currently selling at I can see how cashflow could be tight.