Should you buy for capital growth or rental yield?

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.

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