<prompt> Human: I was wondering whether cities in western countries - such as NYC, LA, Sydney, Vancouver and London where prices are skyrocketing are due to easy credit or due to a structural shift in the global economy which is increasingly more open.I recently came into some money 2.4 million and was wondering whether I should buy a basic PPOR for 1.7m Sydney and invest the rest in a fund or shares, or if I should use it as seed deposit money to buy 3 or 4 investment properties. There are tax advantages in Australia called negative gearing which means the cost of buying a property to rent out with a loan is less over time than if it were my PPOR. However, the catch is that it relies on modest capital growth should I want to sell it. The rent will be sufficient to cover the interest but not the principal also. However, Im lucky enough to have a sufficient wage to pay off the loan my self if capital growth is negative. The other thing Im worried about is that the Anglosphere might be headed in the same direction as Germany and Switzerland, where large companies own most properties and most people rent. Given that property prices are rising, would this mean that more people are forced to rent, and thus rental prices will also rise which means better returns?  <response>: Here, its just good paying jobs and nobody wants to commute. So they bid the prices up. 