[lmt55]

An old rule of thumb was 'buy at 10, sell at 20'. That's the ratio of price to annual rent. So if you could get 0.86% of the house price in monthly rent, it was a big bargain. If you couldn't get more than 0.43%, then it wasn't worth owning.

The rule of thumb is now obsolete, and 30-40 times rent is perfectly common in lots of places.

The newsletter is quite a lot more aggressive than even the rule of thumb from the 'good old days' when interest rates were much higher.

I used to pay around 0.2% of the market price of my apartment per month. The landlord was a professional property management company, and this situation persisted through several new contracts.