A quick newbie question, if I may.
I'm getting my head around property investment from reading this forum. I understand you can invest for yield, for capital growth, or hopefully a bit of both.
I understand the basic idea of the sorts of things that drive capital growth over time. I also have read that getting high yield and high amounts of capital growth sometimes isn't all that likely.
But what what drives increase in rent, over time? Is it simply a reflection of capital growth of the property? So, to get increase in the rent amounts, you need to get capital growth?
Say a property in a cheaper area that is currently "high yield," but in time might only experience minimal capital growth - would this property be likely to see increased rent over time, even if it didn't grow in equity all that much?
I'm getting my head around property investment from reading this forum. I understand you can invest for yield, for capital growth, or hopefully a bit of both.
I understand the basic idea of the sorts of things that drive capital growth over time. I also have read that getting high yield and high amounts of capital growth sometimes isn't all that likely.
But what what drives increase in rent, over time? Is it simply a reflection of capital growth of the property? So, to get increase in the rent amounts, you need to get capital growth?
Say a property in a cheaper area that is currently "high yield," but in time might only experience minimal capital growth - would this property be likely to see increased rent over time, even if it didn't grow in equity all that much?