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