Home video guides Investing for cash flow | Common Investor Mistakes

Investing for cash flow | Common Investor Mistakes

By Michael Yardney

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Published 10 Sep, 2018

The more you know about the most common mistakes that investors make, the better your likelihood of building lasting wealth.

In this series of short 5 minute videos, I discuss the common mistakes I’ve seen investors make.

Today we discuss the choice between investing for Cash Flow vs. Capital Growth.

Which way is right?

Watch Michael explain:

Most invetsors think they need cashflow – residential real estate is a high growth relatively low yield investment
You can’t save your way to wealth
Cash flow keeps you in the game, but capital growth gets you out of the rat race
You need to build a substantial asset base – to give you choices.
Most of your assets on retirement will be capital growth

Need to build assets first then transition to the cash flow stage
You need the capital growth to save your next deposit and the rising rents will help pay for your mortgage

With thanks to Michael Yardney's PropertyUpdate.com.au

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Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is a best-selling author, one of Australia’s leading experts in wealth creation through property and writes the Property Update blog.

Read more articles by Michael Yardney

Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.

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