Investing for cash flow rather than capital growth | Common Investor Mistakes [Video]

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 investors think they need cash flow but residential real estate is a high growth relatively low yield investment Money 2696228 1920
  • 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 the tax free capital growth of your property portfolio, not the rent you receive or the money you save
  • You need to build assets first then transition to the cash flow stage
  • While many investors buy properties for cash flow, I buy properties to allow me to buy more properties. You need the capital growth to pay for your next deposit and the rising rents will help pay for your mortgage for your next property purchase


Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on


If you’re wondering what’s ahead for property you are not alone.

You can trust the team at Metropole to provide you with direction, guidance and results.

In “interesting” times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.

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  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now!  This will give you direction, results and more certainty. Click here to learn more
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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 one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit

'Investing for cash flow rather than capital growth | 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


      Michael Yardney

      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


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