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]
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'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
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