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 74: How this investor plans to double his portfolio within 10 years
Episode 73: Bad builders: how this investor bounced back
Episode 72: Policy changes to interest-only loans: what buyers need to know
Episode 71: How this 'stubborn' investor recognised a property lemon
Episode 70: How this investor complements each property and balances his portfolio
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
Episode 68: Special episode: audience discussion live from the Property Buyer Expo
Episode 67: Don’t get ‘caught up in the now’: an expert reveals his tips for success
Episode 66: Wealth distribution: how should you manage your money?
Episode 65: Real estate agents: what separates the good from the bad?
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