Successful property investment requires balancing capital growth and cash flow objectives. Understanding when to prioritize each strategy helps optimize returns based on your financial situation and investment timeline.
Capital Growth Strategy
Focus on properties with strong appreciation potential:
- Location Premium: Blue-chip suburbs with limited supply
- Infrastructure Growth: Areas benefiting from major developments
- Demographic Trends: Population and income growth areas
- Renovation Potential: Properties you can add value to
Cash Flow Strategy
- • High rental yield properties (5-8%+)
- • Regional and emerging suburb focus
- • Multiple income streams (units, commercial)
- • Positive or neutral gearing outcomes
The best strategy often combines both approaches across your portfolio. Start with cash flow for sustainability, then add growth properties as your equity position strengthens.