The age old myth of capital gain areas vs. high yield/cash flow areas is once again being challenged.
While there is no argument against some areas having more likelihood of Capital Gain over a long time horizon this is not the case for the broad majority of locations.
It is wise to ensure you have the right cashflow FIRST because while you might hold an asset that is growing in value, if you can't pay the bills you may find you have a distressed sale on your hands meaning any gain you had on paper disappears.
Reports of strong rent increases driving improved cashflows in Wellington on the back of 20ish % capital growth... CG is a paper gain, rent increases are cold hard cash!!
Good to see healthy rent rises
While there is no argument against some areas having more likelihood of Capital Gain over a long time horizon this is not the case for the broad majority of locations.
It is wise to ensure you have the right cashflow FIRST because while you might hold an asset that is growing in value, if you can't pay the bills you may find you have a distressed sale on your hands meaning any gain you had on paper disappears.
Reports of strong rent increases driving improved cashflows in Wellington on the back of 20ish % capital growth... CG is a paper gain, rent increases are cold hard cash!!
Good to see healthy rent rises
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