Hi everyone, I'm looking to buy my 4th investment property but I'm in two minds which way to go. Buy for capital growth or go cash flow? I know it's a decision based on many factors and circumstances and it's hard for anyone to give a definite yes no answer, but I'm after your thoughts, opinions and advice to help me out. My circumstances: The three properties I have at the moment I have bought over the past 3 years: - 2 capital growth (positively geared as well) in Sydney and Brisbane. - 1 cash flow (10% yield) in regional NSW. - I've used part of the equity in Sydney property and my added income from number 2 to fund Brisbane one. - waiting and hoping for the Brisbane one to keep heading up. Not as fast as Sydney, but hoping all the same ! - borrowing capacity is getting limited now, so this will probably be the last purchase for a while based on my current circumstance. I obviously want to increase my chances of borrowing more sooner rather than later. Soooooo....... I've been looking around and looking at my options. This is what I've got: 1. Buy another cash flow property in regional location, well within my borrowing capacity. Figures are good. 11% rental yield in sound rental market. Limited capital growth options though. 2. Use all my borrowing capacity to buy another capital growth property in Brisbane with neutral gearing. 3. Look to buy a cheaper property in regional/semi regional area where I can add value by home improvements and adding bedrooms etc etc (therefore having to use up some of my savings), well within my borrowing capacity, in slow moving growth area, but with sound 6-7% rental yield? My initial thoughts: - my first buy was the Sydney one (capital). My second was the cash cow in regional NSW. My third was the Brisbane (capital). So far this order if capital, rental, capital has worked for me, so I'm tempted to continue and look for cash flow. - having another cash cow will add to income and ability to borrow for the next one, and I like having them as a buffer should rates and things go belly up at some stage. - my end goal which I'm aiming for would be to hold as many properties as I can, have enough positive equity properties giving me an income to finally not have to work, whilst having some capital investments to have for a rainy day or to pass on to kids. I'm 40 so I'm not sure if I should be driving for the cash flow rather than capital? What would you do and why?? Thanks in advance for your thoughts.