Tuesday, February 09, 2010

High yield vs capital growth the debate continues

The debate between whether to invest in high income generating properties or aim for capital growth continues. The Financial Times has warned recently that landlords who are chasing high yielding properties may end up being saddled with buy-to-let properties that also exhibit lower levels of capital growth over the long-term.

We have recently highlighted the choice of many landlords over whether they choose to invest in a cash cow or a trophy asset.

I suspect that the current downturn could herald a period of relatively low growth in house prices over the coming decade in which case investing for income may serve landlords better.

Any thoughts?

Landlord insurance

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2 comments:

  1. AnonymousFebruary 12, 2010 at 2:21 PM

    Dislexic Landlord

    To be honest I have never bought property for capital values

    I never sell property WHY NOT I HEAR YOU SAY

    well If I sell I have to pay tax solicitors fees and estate agents fees and after ive sold it I would have to reinvest the money ????

    so why sell also I hope my properties go to my son and Grandchildren subject to IHT ect ect

    ReplyDelete
  2. HawkeyeFebruary 12, 2010 at 4:20 PM

    I like your thinking, dislexic.

    ReplyDelete