If you’re a property investor, should you invest for capital growth or rental yield?

Robert Kiyosaki, the original king of wealth creation education, spoke about always investing for rental yield so your property would pay you a net income after covering all the mortgage costs and expenses. Capital growth should then be the icing on the cake rather than the main reason for it. That still makes a lot of sense today but there is never one strategy that is 100% perfect and there’s always a counter-argument to do the exact opposite.

When I develop my property investing strategy, I let the numbers do the talking and look at my options on an unemotional spreadsheet before then speaking to my accountant, mortgage broker and financial planner. There’s never going to be a single strategy that suits everyone. Everyone’s strategy will be different according to their unique financial situation, their knowledge of property and their appetite for risk. My main recommendation is to do something. Whether you get it right or wrong, at least you’ve taken action and have some chance of making a profit at some point in the future.

Despite Donald Trump thinking he’s now COVID immune, for most of the rest of the world COVID and working from home could be here to stay for a while. Not everyone likes the hustle and bustle of the city and so a sea or tree change is becoming more and more of a consideration. But is this a temporary fad or something that people can live with for years to come? Brett Hunter proud Central Coaster and Principal of Raine & Horne, Terrigal-Avoca Beach-Saratoga-Erina joins us tonight to give us his insights and totally unbiased opinion. I suppose we should mention now that we might be broadcasting from Pearl Beach next week…