Yep, this. A unit (multi-dwelling property, not necessarily an apartment) might cost 650k here, but only rent for 500$/w. 25kpa is a 4% return on that principl

Yep, this. A unit (multi-dwelling property, not necessarily an apartment) might cost 650k here, but only rent for 500$/w. 25kpa is a 4% return on that principle, before expenses (property management, maintenance, rates/taxes etc). The only context in which it makes sense is if capital gains/land value goes up, which it has historically but that's no guarantee. Houses make all these numbers even worse - higher upfront expense (land value) and lower rental yield (they rent for more, but tenants prefer a better house/dwelling more than they care about a back yard, so cost goes up more than rent does)