Investing for cash flow | Common Investor Mistakes [Video]

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The more you know about the most common mistakes that investors make, the better your likelihood of building lasting wealth.

Each week in this series of short videos, we discuss the common mistakes we’ve seen investors make.

Today we discuss the choice between investing for Cash Flow vs. Capital Growth.

Which way is right?

Points we discuss:

Most invetsors think they need cashflow – residential real estate is a high growth relatively low yield investment
You can’t save your way to wealth
Cash flow keeps you in the game, but capital growth gets you out of the rat race
You need to build a substantial asset base – to give you choices.
Most of your assets on retirement will be capital growth
Need to build assets first then transition to the cash flow stage
You need the capital growth to save your next deposit and the rising rents will help pay for your mortgage

NOW WATCH: PROPERTIES DOUBLE IN VALUE EVERY 7 TO 10 YEARS|COMMON INVESTOR MISTAKES [VIDEO]

About Michael Yardney

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au

'Investing for cash flow | Common Investor Mistakes [Video]' have 2 comments

September 20, 2018 Murray L Raimona

Well to me it would be cashflow first in order to build a asset base .Otherwise you cant move on . Quantity first before Quality because then only then you can weed out the not so well perform assets

Reply
- September 20, 2018 Michael Yardney
  
  Murray – I’m sorry I didn’t get my point across well. It’s really the other way around – sure you need cashflow to pay your mortgages, but you must have capital growth to build your asset base
  
  Reply