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Using a cash flow strategy means investors are getting a weekly income and realising the value
of their investment over the short term.
Investors have more cash in their pocket to cover regular property expenses and unforeseen
property expenses.
In a residential property scenario where a property has a high rental yield and cash flow, it
generally has very negligible or no capital growth.
Since investors are earning a positive income, they can’t take advantage of a negative gearing
tax benefit and instead have to pay tax on their rental profits.
Pros
Cons
Cash flow strategy
Increased value of the property over the long term more than outweighs the cash flow benefits
in the short term.
Investors are more likely to make a loss with a capital growth strategy and can take advantage
of a negative gearing tax benefit.
LVRs are generally more generous, because banks are typically more comfortable lending for
properties in desirable growth areas, often big cities.
Cash flow is negative, meaning investors with a capital growth strategy need to dip into their
own pockets to cover property-related expenses, such as mortgage repayments and council
rates.
Pros
Cons
Capital growth strategy
What’s important for you; investing to earn Cash
Flows or creating long-term wealth through
Capital Appreciation? Learn from the course
and enable yourself to align your Investing goals
with the suitable options only on QUEST.
Click Click
Thank-You

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CashFlow or Capital Appreciation.pdf

  • 2.
  • 3. Using a cash flow strategy means investors are getting a weekly income and realising the value of their investment over the short term. Investors have more cash in their pocket to cover regular property expenses and unforeseen property expenses. In a residential property scenario where a property has a high rental yield and cash flow, it generally has very negligible or no capital growth. Since investors are earning a positive income, they can’t take advantage of a negative gearing tax benefit and instead have to pay tax on their rental profits. Pros Cons Cash flow strategy
  • 4. Increased value of the property over the long term more than outweighs the cash flow benefits in the short term. Investors are more likely to make a loss with a capital growth strategy and can take advantage of a negative gearing tax benefit. LVRs are generally more generous, because banks are typically more comfortable lending for properties in desirable growth areas, often big cities. Cash flow is negative, meaning investors with a capital growth strategy need to dip into their own pockets to cover property-related expenses, such as mortgage repayments and council rates. Pros Cons Capital growth strategy
  • 5. What’s important for you; investing to earn Cash Flows or creating long-term wealth through Capital Appreciation? Learn from the course and enable yourself to align your Investing goals with the suitable options only on QUEST.