Should you invest for Cash Flow or Capital Growth?

So you want to invest in property?

But have you thought about what you want to achieve through property? Could be pension, financial freedom, ego boost, pure interest….

It is crucial that you know what you want out of property, i.e. what property investing can bring you. Because only then will you be able to pick the right strategies and specialise.


There is a particular angle I want to talk about today, which is the cash flow vs capital growth dilemma.


Most people invest in property for either cash flow or capital growth. A good deal can get you both. But you should still understand out of the two, which is more important for you at a particular point in time.

Cash flowing properties will get you a recurring income every single month, even if the amount is not large. Capital growth strategies may get you a lumpsum after a period of time.

Generally speaking, cash flow strategies would be the solid foundation for any property investor. With a portfolio of cash flowing properties, you would have an extra income stream coming in, giving you more security. And as they are cash flowing, you would not need to worry about property prices going up or down.

And once you have the cash flow foundation, you can incorporate capital strategies to create more margin. However capital strategies typically require larger capital input, and more risk as they mostly involve some level of development.

If you are new to property, cash flow strategies would be easier to pick up, and would be your foundation for other more advanced strategies. And depending on how much capital you have, or whether you want to use your capital, there are great strategies such as BTL, HMO, R2R, Lease Options, etc…..

However, the more ‘simple’ the strategy, the more competition, and the more you need to do it correctly in order to create the high return and cash flow you want to achieve.

Till next time :)
Emma

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session with me.