Locating cash flow properties and capital growth properties

You are now in the position to look for a unit or house but what determines whether a property would be a good cash flow property or a capital growth property.
Below are some of the key points you should be looking for in your search.

Locating Cash flow properties
  • Look in high yielding suburbs
  • Buying properties 20 – 40% below the median price for the suburb.
  • Buying in regional areas or targeting student accommodation.
  • Renovating and adding value to increase rents.
  • Managing interest rates and fixing when we think the current interest rate is at the bottom of its cycle.
Locating capital growth properties
  • Strong economic growth and low levels of development
  • Close to schools, shops and public transport
  • Close to a capital city
  • Older properties rather than new ones
  • Properties that have rental appeal
  • Purchase in countries where there has been a history of growth