Are you chasing an income producing property or are you chasing capital growth?

Are you chasing an income producing property or are you chasing capital growth? 

I'm a little surprised that I am still being asked this question.

Of course, I am chasing both. And I hope you're doing the same.

There are just no excuses these days for anything less. The mining boom should have taught us all that we're crazy trying to ramp up our income so high that we put ourselves in a high risk situation.  Are you just chasing capital growth and leaving families and lifestyles strained because of the cash flow element? It's crazy to be following those strategies today, in my belief.

I think there's a really great opportunity for investors to stay focused toward high quality areas that are always going to deliver really solid levels of capital growth in their cycles over time. I don't see the need to go to little regional locations and unproven areas or to go chasing high risk industries. I know you can focus on the cities, the secondary cities, the major hubs that still offer commercial airports, hospitals and universities and so forth. You don't have to go down to small regional locations just to get a substantial rental income.

But if you are setting the bar based on thinking that only a blue chip suburb is going to give you capital growth, this is really going to hurt the income component of your portfolio. This will cut back your ability to get loans and risk your cash flow in retirement, creating a situation that the only mechanism you have will be to sell whatever properties you've got and cash out at some stage and then pay capital gains tax, etc.. 

I think there's a real blueprint here - a way for investors to set themselves up again.  Really good capital growth and at least double (but in many cases triple) their rental incomes by following an approach to get a happy marriage between both.

Now I hope that shapes up your model a little, if you're not already onto this. Please don't think you have to choose one or the other. There are certainly great opportunities out there for investors. Perhaps you need to open your mind to where those areas are…..what are the property types?….what are the strategies that will allow me to get a really good marriage between both income and capital growth?


Happy investing. 


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This Report outlines the biggest single movement of wealth we have ever witnessed in Australia, and how property investors can profit.


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SEQ Big Shift Report
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