Better to rent or own?

By MARY HOLM

Q: I made up a spreadsheet about 6 months ago when deciding whether to invest in a house or continue renting.

My conclusions were that long-term investment doesn't pay, and that the only way to make a reasonable return is to buy low, have no capital expenditure and sell high.

I think the main reason for the lack of good returns is the lack of reasonable rental yield on residential property in New Zealand.

To invest long term, you really need to be getting 10 per cent yields, which are only achievable if you pick up real bargains.

It's the same old story: Buy low, sell high. And, as you point out, a higher-than-market yield along the way doesn't hurt either.

If only we could always do that!

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