It’s a question that may come with a different answer depending on who you ask, but it’s one with plenty to cover! There’s three main reasons why we’re asking which is more important – yield or capital growth:
- People get obsessed with different points of views
- There’s absolutely loads of misperceptions floating around
- Poor knowledge could be costing YOU money!
Here’s what we’ll be covering to finally get to the bottom of this age-old property debate:
Why is yield important?
First up, we’ll be covering your basic profits and showing you how to assess deals accurately
Why is capital growth MORE important?
Because, let’s face it; nobody becomes wealthy through rent payments! Property creates wealth through capital growth – and here we’ll run through a couple of great examples to show you how that happens. It’s hard to predict growth in the short term, but this is where your long-term plan and the 18-year property cycle really come into play! Take a listen to the following Property Podcast episodes to learn more about the 18-year property cycle:
And to finish up, we’ll be running through a few other things to be aware of, such as: the concept of total growth, and not being blinded by yields – yes, sometimes it really is better to take a property for a slightly lesser yield but with higher capital growth potential!
By the end of this podcast, you’ll have a clearer idea of which is more important: yields or growth…