Just got off the phone from a young guy giving me what sounded like an "education" on what to buy. He said he wanted to buy HIS FIRST PROPERTY (an IP) and wanted to get AT LEAST a NET yield of 7-9% for a residential property around $100,000. He wanted to buy a property which had NO capital growth for the past 10 years and he was subscribing to the cashflow positive mantra (note I don't have a problem with this mantra AS LONG as it is combined with a good proven capital growth location, but on its own, IMO it's a risky move. I said as a general rule most of the rich people in Australia have got rich off capital growth, not cashflow, but this young guy thought he KNEW IT ALL. He said I've got a Masters in Property (Geez!!!). Mate, I've got a Masters in real life, by owning 4 properties!!! (used to own 6). To that, he said he was an asset manager controlling $90million in properties through property trusts and the like. He went on to say that he felt that property prices were going to fall Australia-wide over the next 2 years. Sydney and Melbourne, IMO, would be in this bracket. I said why don't you buy in 2 years time when the "sky is falling"!! Mate, if I could get a 7-9% nett yield, I certainly wouldn't be sharing it with anyone - I'd be buying it myself! I tell you what, some of these young folk, think they know it all before THEY'VE ACTUALLY BOUGHT ANYTHING. Yes, I get everyone has THEIR opinion (including me), but really for someone to basically tell me "how it is" relating to property investment, WITHOUT even owning 1 property to begin with, is pretty "rich" coming from this guy. Yes, I don't know everything either and have made a lot of mistakes and there's some far richer people I know and particularly on this forum, which I aspire to.