It is one of the quintessential questions when it comes to real estate investment, and one that has sparked debate amongst experts & advisers over the years: that is, which is better, capital growth or cash flow?
Determining which strategy is best suited to your own individual needs requires assessment of a range of factors. There are many elements to consider, and often would-be investors get caught up in details of the wrong sort: the finishes of the property, and whether it suits their personal aesthetics. The details that savvy investors focus on are the hard facts that make an investment sink-or-swim — they’re considering whether capital growth or cashflow is more important when it comes to their property investment. In today’s brief, we weigh up the relative value of both elements in a successful investment plan.