positive cashflow properties vs Capital Growth:
What’s more important, cashflow positive properties or capital growth properties? A lot of investors have different opinions on this subject.
At Prospa Property Advisory, we specialise in sourcing both positive cashflow properties and properties that experience strong capital growth. These dual benefits ensure your portfolio grows steadily while providing consistent income.
Investing in property is a powerful way to build wealth. But finding the right investment is key.
What is a Cashflow positive Property?
A positive cashflow property generates more income than it costs to own. This means the rent covers expenses like your mortgage, maintenance, and insurance, and leaves extra money in your pocket.
For example, if your rental income is $2,500 per month and your total expenses are $2,000, you enjoy $500 in positive cashflow. This steady income stream helps you reinvest, pay off debt faster, or save for the future. These type of results can be achieved with different property types such as Dual Key, Multi-Res or NDIS.
Prospa Property Advisory can help you source the right cashflow positive properties to fit your strategy. But as we’ve explained in this article about NDIS investment properties, you need to get the right advice. Sometimes there’s a lot of hype and you need to see the fine print. Click here for details.
Why a mix of Capital Growth and cashflow positive properties
Capital growth is the increase in a property’s value over time. It builds your wealth as your asset appreciates. Investing in areas with strong market fundamentals ensures your property’s value grows, boosting your equity and opening doors to further investments.
By focusing on properties that balance positive cashflow with capital growth potential, you can maximise returns while enjoying financial stability.
Why Buy Brand New?
Brand new properties offer unique advantages that set them apart as a smart investment choice. Here’s why:
- Warranty Protection: Everything in a new property is covered by warranty, providing peace of mind and reducing unexpected costs.
- Low Maintenance: New properties require little to no maintenance, avoiding tenant complaints and costly repairs.
- Tenant Appeal: Tenants are attracted to modern homes with updated features. Happy tenants are more likely to renew leases and pay higher rents.
- Tax Benefits: Recent changes mean depreciation for fixtures, fittings, and appliances can only be claimed on brand new items. This can result in thousands of dollars in tax deductions each year, which can help create a cashflow positive property.
Property Selection Criteria – cashflow positive properties or capital growth
At Prospa Property Advisory, we use a strict selection process to ensure every property delivers both positive cashflow and capital growth potential. Here’s what we look for:
Local Amenities
- Proximity to employment hubs and reputable schools.
- Access to quality shopping, education, healthcare, and leisure facilities.
Infrastructure
- Key infrastructure projects, such as new hospitals, schools, or industries in development.
- Reliable transport options and improved transport corridors to employment zones and local amenities.
Rental Demand
- A substantial population base to ensure both tenant and resale demand.
- Avoidance of single-industry towns where economic downturns could impact rental and property values.
- Balanced rental-to-owner ratios to prevent excessive competition among landlords.
- Analysis of current and future supply to mitigate oversupply risks that could lead to vacancies and reduced rents.
The Prospa Difference
At Prospa Property Advisory, we help you find properties that strike the perfect balance between cashflow positive properties and capital growth. Here’s why investors trust us:
- Thorough Research: Every property we recommend is carefully analysed for rental yield, market trends, and growth potential.
- Tailored Strategies: We align our property recommendations with your goals, whether you’re starting out or expanding your portfolio.
- Expert Guidance: Our QPIA-accredited advisors provide support and insights every step of the way.
How We Help You Succeed
We take the stress out of property investing by providing:
1. Access to Premium Properties
Our team identifies high-potential properties with strong rental income and growth prospects. Whether you’re looking for a cashflow positive investment or one focused on capital growth, we’ve got you covered.
2. Comprehensive Market Insights
We research market trends, infrastructure developments, and local demand to ensure you invest in areas primed for success.
3. Personalised Advice
Every investor is different. We tailor our strategies to suit your financial situation, risk tolerance, and long-term goals.
Why Choose Cashflow positive properties and Capital Growth Properties?
Combining cashflow positive and capital growth creates a winning formula for property investors. Here’s why:
- Steady Income: Positive cashflow reduces financial strain and provides surplus funds.
- Wealth Accumulation: Capital growth increases the value of your portfolio, giving you more equity to leverage.
- Risk Management: Diversifying with both strategies balances your investment risk and ensures consistent returns.
Start Building Your Portfolio Today
Investing in both cashflow positive and capital growth properties is the smart way to achieve financial independence. At Prospa Property Advisory, we provide the expertise, research, and support you need to make confident decisions.
Contact us today to explore investment opportunities tailored to your goals. Let’s grow your wealth together.
