I think when it comes to your primary residence, you've got to factor in the fact that you need to stay somewhere - so the equivalent rental needs to be factored into the equation.

For investment properties, someone else is paying the rent - and the money is made by capital growth as well as rental escalations. This, of course, assumes capital growth and an inflationary environment.

As an aside - I suspect this is why good equities outperform property over the long term. With a property - well, it's earnings footprint growth is rather limited to the size of the plot. With a good company, they are constantly striving to grow their earnings footprint.

As Karen pointed out earlier, though - External financing is something of a swing factor in what might be best for any particular individual at any given time.

I also share Karen's concern that financial planners might be more motivated by what yields the best commission as opposed to the best return for the investor.