podcast

Should you buy for capital growth or rental yield?

0

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

{{youtube id="PO7F-trQsq4?list=PLZWLiY_OqG3NVFkLd9O_jexF9TKb0NWXd"}}

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 65: Real estate agents: what separates the good from the bad?
Episode 64: How this investor learned from a property blunder
Episode 63: Q&A session: the SPI team answers your questions
Episode 62: Property procrastination: the importance of finding help
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
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
FAIRLIGHT 46.02%
2.
CASUARINA 44.36%
3.
THE ENTRANCE NORTH 41.09%
4.
ULTIMO 40.67%
5.
LAVENDER BAY 40.2%