Capital Growth Strategy

By Stephen McClatchie

Capital gains are achieved when the value of your property increases over time compared to the original purchase price plus costs. If you were a smart property investor, one of the things that you would be doing is checking out the growth of property in your city of choice, then focus on buying in those areas that you believe will be rising faster than the national or city average. You will be looking to maximise your capital growth in the shortest possible timeframe. But these properties may not provide the highest yield – it can be a catch 22 of sorts. That’s why you need to have a strategy in place.

The return on your investment incorporates the capital growth along with the income derived from the rent. Generally – but not always if you go for a property with higher rent you are likely to get lower capital growth out of the property. It all depends what you will be looking for from your property. Do you have a couple of negatively geared properties? Would a property providing great cash-flow be the best next step? As you can see, knowing the numbers is an essential step to SMART investing, particularly as your cash flow and equity increases. They will tell you WHEN you will want to invest, and in WHAT. And as your potential for investing increases, you will start expanding your possibilities. In such cases, knowing the numbers becomes ever more essential. 

About Stephen McClatchie….

Capital Growth Strategy

The importance of Gross Rental Yield

By Stephen McClatchie

Capital gains are achieved when the value of your property increases over time compared to the original purchase price plus costs. If you were a smart property investor, one of the things that you would be doing is checking out the growth of property in your city of choice, then focus on buying in those areas that you believe will be rising faster than the national or city average. You will be looking to maximise your capital growth in the shortest possible timeframe. But these properties may not provide the highest yield – it can be a catch 22 of sorts. That’s why you need to have a strategy in place.

The return on your investment incorporates the capital growth along with the income derived from the rent. Generally – but not always if you go for a property with higher rent you are likely to get lower capital growth out of the property. It all depends what you will be looking for from your property. Do you have a couple of negatively geared properties? Would a property providing great cash-flow be the best next step? As you can see, knowing the numbers is an essential step to SMART investing, particularly as your cash flow and equity increases. They will tell you WHEN you will want to invest, and in WHAT. And as your potential for investing increases, you will start expanding your possibilities. In such cases, knowing the numbers becomes ever more essential

About Stephen McClatchie….

Capital Growth Strategy