Buying for cash flow or growth?
Posted on Feb 25, 2008
in Financial & Investment Info
By Margaret Lomas
February 2008
Sometimes, investors become very worked up about whether to buy for cash flow (that is, property with the lowest personal input required) or for growth (property which may cost more from your own pocket to hold, but which will grow more quickly).
During the past 10 years, the property market has behaved differently, and it is not as easy to predict growth as it used to be. Years ago you knew that buying in a city meant lower yield but more growth, and buying regionally meant lower growth but higher yields. More recently it has become harder to predict just which areas are going to grow, with many high yield regional properties delivering…
February 2008
Sometimes, investors become very worked up about whether to buy for cash flow (that is, property with the lowest personal input required) or for growth (property which may cost more from your own pocket to hold, but which will grow more quickly).
During the past 10 years, the property market has behaved differently, and it is not as easy to predict growth as it used to be. Years ago you knew that buying in a city meant lower yield but more growth, and buying regionally meant lower growth but higher yields. More recently it has become harder to predict just which areas are going to grow, with many high yield regional properties delivering…
