One of the key concepts of property investment is to buy, hold, wait for equity to double every ten years, use increase in equity to live, buy more IP's etc etc Sounds great. Has worked for a lot of people here. But is this growth sustainable? If you look at compound interest of 6% (very generous) over 10 years, 100K would go to 180K vs property going from 100K to 200K over the same period. This means property prices are increasing at faster rates that pretty much every thing else (apart from national debt), CPI, wages, education blah blah blah So why are property prices able to have this growth? Simplistically speaking because people can afford them so there is demand. In the face of doubling in value every 7 to 10 years, can people continue to afford property that increases at a higher rate than their income? I love property, love researching, learning and the idea of expanding my portfolio. I am worried though that a strategy that does not take into account the possible lack of sustainability of double growth is flawed. For instance if growth is not sustainable, maybe focusing on positive csh flow would be a better strategy. My understanding of both property and economics is limited (a kind way of saying stupid) so the thoughts or people more knowledgeable than my self would be really appreciated.