> In a free market, rent will always be higher than cost of a property. If it were less, the property is an unprofitable investment and should be divested.

perhaps this might be true asymptotically in a sufficiently-qualified rational, efficient, spherical, theoretical market. also, a market where tax laws don't give preferential treatment to renting or buying.

i'm currently renting in one of australia's major cities, the gross rental yield of this place would be something like 3% before subtracting costs (council rates, maintenance, interest, property management fees, insurance).