History shows us this over and over again – there’s always been a cycle of growth and recession. Due to fear and uncertainty, most people end up selling when they should be buying. But property has always remained a market that bounces back with resilience.
People will always need a place to live and if they can’t afford to buy, they have to rent – which offers some measure of security in terms of a property investment holding steady in volatile times. This, along with the current buyer’s market conditions and the lower interest rate (the lowest in 22 years!), makes it a good time for investors to capitalize on property investments.
“Real estate provides the highest returns, the greatest values and the least risk.” – Armstrong Williams (Entrepreneur)
Cash Flow vs Capital Growth
A cash flow strategy involves investing in properties with high rental yield potential and a rental income that is greater than the total expenses of holding the asset. Just ask any businessman – they will liken cashflow to oxygen.
But if you chase capital growth only, you’ll run out of serviceability, because you’ll get to a point where the bank says they will not lend you any more money because the cash flow isn’t there. But you also need growth properties to build your long-term equity.
Perhaps this is then the answer: a strategy that seeks to enjoy the best of both worlds by securing both growth and cash flow.
The Base Apartments gives you exactly this – the best of both.
-Article written by Ryan Van Heerden, CEO of Ryans Realty