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Capital Growth versus Income

“These days critics of property investment often quote the current capital growth figures of property to "prove" that property investment is not a good investment at the moment. Of course they were dead quiet a few years ago when property appreciated at rates of 30% p.a. and above. The mistake these so-called experts make is to always think of investment in terms of buying and selling. In fact, this is how financial planners, investment analysts and all the other so-called "financial experts" are trained. However, property is different. One should look at property in terms of the income streams it can provide. We believe that true wealth is determined by your income streams, not by how much money you can make with a particular transaction. Although we know that property will appreciate in value over time at least at the rate of inflation, we see building a property portfolio more as having a dairy farm. The idea is to buy the cows, keep them and milk them every day. As long as they provide good milk, why sell them? If you are forced to sell, you will still make money anyway. P3 will teach you how to manage your "dairy farm" effectively by showing you how the right procedures can eliminate risks and how you can use the banks money to buy your "cows".


30 Jul 2014
Author denisealterskye
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