Understanding Investment Property Growth and Return

Sunday, 7th June 2015

Growth can never be predicted. It’s an unknown. This applies to all investments, no matter the type or asset class.

What a true investor knows and what I know is the factor of ‘TIME’. Time is the one indicator we have that will give you, the investor, more potential for growth.

Most people say that if you invest in property it will double every ten years. Can this happen? Yes. Can we predict this? No. But as an investor, I know one thing, if I can hold onto my property for the longest possible period of time, I have a better chance of growth.

Basically, property is both an asset and an investment vehicle that provides the potential for exceptional capital growth, while at the same time providing a return from rental income.

Another factor to consider is finding the right balance between growth and cash flow. Your individual needs and the investment strategy you’ve decided on will help highlight the right property for you. Ultimately, the return will help offset any holding costs associated with managing an investment property, while capital growth will support you building a portfolio and developing more freedom and security in the long term. A more comprehensive discussion of capital growth versus return will be covered in one of our other publications.

If you have a question or would like to know more about growth and return you can download our ebook why property, join us at our next seminar or contact me, I would love to talk to you peter@investoproperty.com.au