podcast

Should you buy for capital growth or rental yield?

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Peter O'Malley, Peter O'Malley, author, Real Estate Uncoverer

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If you buy solely for capital growth, which a lot of investors are doing in the market place at the moment, and overlook yield I believe you're not investing, I believe you're speculating on the property market. If you do buy good real estate that offers a good yield, capital growth will come that's for sure. But if you're buying purely for capital growth and over looking the yield, you'll be seriously negative geared on that property and you need a larger capital growth at the end of the day to compensate for the lack of yield on the way.

Listen to other instalments of The Smart Property Investment Show:
Episode 61: The ins and outs of strata: what buyers should consider
Episode 60: The pros of using a buyer's agent: why this investor brought someone in
Episode 59: How to invest in property as a team: two investors share their secrets
Episode 58: When do you stop investing? The SPI Show answers more listener questions
Episode 57: Wealth creation through property: trends and themes to think about in 2017
Episode 56: The SPI Show accountant reveals all: How to pick your financial team
Episode 55: The reluctant property investor: How necessity drove an 18-property portfolio
Episode 54: The SPI Show Q&A: Listener questions answered honestly
Episode 53: 6 properties in 2 years: how this investor is achieving his goals
Episode 52: Will property prices fall? When? And by how much? What investors need to know
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