Capital Gains vs Cashflow

Discussion in 'Investment Strategy' started by MTR, 17th Jun, 2016.

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  1. sumterrence

    sumterrence Well-Known Member

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    19th Jun, 2015
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    448
    Location:
    Sydney
    I think the concept should be pretty simple:

    Capital Growth = non realised gain unless sold
    Cash Flow positive = instant realised gain

    There are two ways to realise Capital Growth, through selling or increase your debt via strong income stream. These two method is time consuming and subject to financial market risk.

    Cash flow positive gives you an instant dividends from your capital investment, and while you pay down your debt you are also creating some solid equities, rather than rely on the market trend to determine how much equity you are allowed to have.
     
    sumterrence, 26th Jun, 2017
    #161
  2. Sackie

    Sackie Well-Known Member

    Joined:
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    Location:
    Vaucluse, Sydney.
    Yes but instant dividends at what future cost? I'm not saying not to go CF properties. Just saying it won't be the smartest move for all investors. Highly dependent on individual circumstances imho.
     
    Sackie, 26th Jun, 2017
    #162
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