What’s more important: yield or capital growth? 2017-09-07T09:14:55+00:00

What’s more important: yield or capital growth?

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:

  1. People get obsessed with different points of views
  2. There’s absolutely loads of misperceptions floating around
  3. 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…