Hi everyone Iam a beginner in this world of property investing. Have not bought any property yet but looking to do it this year. Interested in the concept of rentvesting to begin with. In here for the long term at least 10 to 15+ years...Prioritizing cashflow over capital gains. Looking at the abundance of information in here, Iam pretty sure this can be called a University of Property Investing, and with the support of all you wonderful open minded people, newbies like me will graduate with flying colors and be a contributing member of this community for a very long time ahead. Thank you everyone... Cheers Arun.
Why cashflow over capital gains? Because cashflow is more reliable and capital gains is gaming the future? Because its silly to lose money? How do you get rich on term deposits? Long term, capital gains will beat cashflow for growth, and when you have nothing, you need growth. Even with the same rate (e.g. 10% cash v 10% growth) your still better off with growth. In this part of the credit cycle, additional loans are harder. You buy something just because it gives you net cashflow, burn up your borrowing capacity, and give up on decades of growth for a couple k a year just so your not 'speculating'.
Hi, that decision is based on the fact that as far as I looked, which is not much by the way, all the growth suburbs are out of my reach in terms of the deposit saved up. And it's not a rule I wanna stick to, it's what looks viable with my current situation to kick start my investment. Thanks Cheers Arun
Hi @Aks welcome to PC Great advice from @Trainee Possibly look at a mix of cash flow and capital growth. Buy good quality assets close to infrastructure, rather than just purely buying anything only because it puts $1,000 cash flow in your pocket each year.
I used to drive a taxi for fellow called Arun. Anyway, that's a different story. Welcome aboard Arun and good luck with building your property portfolio. Hope you're not the Arun I used to drive for. If so, sorry for trashing your cab.
Well, after eating some fresh donuts as they arrived at the back dock I would then proceed with some other donuts in the carpark lol No, I didn't last long at Woolies.
Well that's the only way to eat donuts, but I bet the stocktake guy wasn't happy when he had to attribute the shortage to the ex-employee bad attitude burnout guy...
It wasn't just those delicious donuts that attributed to the bad stocktake result lol. Stock was moving but just not in the normal direction lol.
