Capital Growth vs Income Return

There are two distinct camps of people who invest in property: those who do it for return and those who do it for capital appreciation. So which is the best?

Below I present a cash flow analysis over 20 years to show the comparison between high growth/low return and high return/low growth.

Under this scenario, the high growth/low return overtakes the low growth/ high return. At ten years the difference between the two is approximately $465,823.

Whichever way you choose to invest in property, it is extremely difficult to speculate on and achieve good results. Some people prefer the passive income approach and some the wealth creation strategy. But if done sensibly, it provides a safe vehicle for wealth creation.