Should You Invest For Cash Flow or Capital Growth?
b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/should-you-invest-for-cash-flow-or-capital-growth\\\\/#arve-youtube-zrczsiw3kzi659a0b2cdd829414084704","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/zRCzsIw3KZI?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\n\\n\\nShould you invest for cash flow or capital growth? What are some of the pros and cons of each investment strategy and which is going to be better for you.\\nFree Strategy Session - https://onproperty.com.au/session/\\nSuburb Research Course - https://onproperty.com.au/suburb/\\n\\n0:00 - Introduction\\n1:00 - The pros and cons of capital growth\\n3:06 - The problem with only focusing on capital growth\\n4:41 - The pros and cons of cash flow\\n8:06 - How to get cash flow AND capital growth\\n8:38 - A real life example\\n10:02 - You can have both! If you do your research\\n11:32 - If you need help doing suburb research check this out\\n\\nRecommended Videos\\n\\nA perfect granny flat opportunity (On The Road Ep2) - https://www.youtube.com/watch?v=shMlAikYO2Q\\n4 Income From The 1 Property (On The Road Ep1) - https://www.youtube.com/watch?v=RQbn5M_v3to\\nTranscription:\\nShould you invest for cashflow or capital growth? The answer\'s both, but rather than just say that and the video, they\'re going to look into some of the pros and cons of capital growth and then some of the pros and cons of cashflow so you can decide what\'s more important to you as you\'re looking at Nsse potential investment properties. Hi, I\'m Ryan from on-property dot Com dot U. I help people achieve financial freedom and this is something that\'s been coming up a lot lately in videos that I\'ve been doing with Ben Everingham from pumped on property and that\'s just this idea of should you invest for capital growth or should you invest for cashflow? And as I said at the start of the video, the answer is you should be investing for both, but I want to get you to have a look at your investment goals at your life situation and to try and work out which of the two is going to be most important to you so you can focus on that in your search while at the same time trying to get both of them.\\n\\nSo let\'s start with capital growth. And the pros and cons of capital growth, capital growth has traditionally been the investment strategy for most investors in Australia to achieve wealth through investing in property. The idea is very simple. You purchase a property for a certain price, that property goes up in value, you make money when you either sell that property or you borrow against that growth to go ahead and invest elsewhere or to simply take it out and spend it. One of the things that makes capital growth so effective is firstly the market has traditionally grown quite well, but also the fact that you\'re leveraging your money to maximize your capital growth. So let\'s say you take a 10 percent deposit, so you take $50,000 and invest into a $500,000 property. Let\'s say that property goes up by 10 percent. Well that property is now worth $550,000 or you\'ve effectively made $50,000 or a hundred percent return on your original cash investment.\\n\\nIf you were to put that $50,000 in the stock market and that 50,000 went out, five percent went up 10 percent, then you\'d have 55,000 and you would have made $5,000. So by leveraging and by borrowing money you can actually increase your return and because you can also rent out your property. Then ideally you\'d been a situation where the renters are paying the majority of the interest on your property anyway so you\'re not extremely out of pocket. So capital growth can be a great way to grow your wealth. Obviously investing in something like a 500,000 or a million dollar property and getting growth like that. People who\'ve invested in Sydney and I\'m seeing growth of hundreds of thousands of dollars...'