CF vs CG
- Thread starter s050399b
- Start date
How long is a piece of string? Why cant you go for both? Most younger people on a lower income or with higher family expenses will most likely buy for cf at first, and then when their income increases they can start to afford the -cf of a cg property. As they approach retirement they will switch again to cf investments.
cg and cf is also pretty fickle, whose to say which properties will necessarily have cg in the future? one persons cf property is another persons -cf due to tax brackets, depreciations scheduals etc etc.
Find out as much as you can about both, and any other information you can get your hands on, and then go and see what you can borrow. This figure will usually help determine the type of property you buy.
Good luck
cg and cf is also pretty fickle, whose to say which properties will necessarily have cg in the future? one persons cf property is another persons -cf due to tax brackets, depreciations scheduals etc etc.
Find out as much as you can about both, and any other information you can get your hands on, and then go and see what you can borrow. This figure will usually help determine the type of property you buy.
Good luck
good advice
CG & CF are not mutually exclusive. Buying in an outer suburb with higher cash flow will not restrict the CG component.
Check the CG for the inner vs outer suburbs in most metro cities and you will realise that both will achieve similar growth.
Harris
SS = Somersoft...
I'd go CF neutral in a good growth area if starting out. Limit your holding costs to negligible to take the stress out of it without scarificing your capital growth.
Cheers,
Michael
