One of the most asked questions when purchasing properties for investments is should I purchase a property for capital growth or for rental income?
To begin with there are 3 types of property assets.
- Growth – Properties that most likely will grow in value. Often these properties are near built areas, cities, hubs or central business districts.
- Balanced assets – Often just outside a city that offers lifestyle options. These are properties that people are willing to commute into the city from. Towns in coastal areas, outer cities, or green areas. These tend to have a higher yield but there is also some capital growth.
- Income assets – Properties in country/reginal areas. Cost to purchase them is lower but they generally higher rents. The capital growth may not be that high.
So then, what type of property should I buy?
This depends on what is your strategy. You need to consider these 3 questions:
- How much you want to retire on?
- What your current income is?
- How much time you have?
Answers to these and other questions in further blogs.