What type of property to buy?
It is one of the most debated topics in property investing – capital growth or cash flow? The next few blogs I am going to take you through exactly what are capital growth properties and cash flow properties so you can make an informed decision about what is best for you.
Capital growth properties
Buying a property for capital growth essentially means purchasing a property that will rise in market value over time. It can be sold at a significant profit or be used as equity to buy more properties. They are generally more expensive to buy than cash flow properties and rents are higher. Properties of this nature can usually be found in capital cities and major regional areas.
With capital growth properties, investors will more than likely contribute to the ongoing cost of the property as the costs will outweigh the rent.
Capital growth properties are a great strategy to earn maximum returns on your investment but you will need to make sure you can afford the upkeep!