Dumb bubble: Buy crashing property for yield

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From Domainfax:

There’s a upside in property markets like Perth where house prices are falling: strong rental yields.

The town of Northam, 100 kilometres, east of Perth has made the top 10 best yield suburbs in property research group Residex’s Best Rents Report in September.

“WA might be suffering a downturn, but it depends on where you look,” Residex market analyst Eliza Owen said.

Shameless. The WA crash is not and will not be contained to mining areas.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.