The two pronged purpose of ... property investment: capital growth + rental yields / behavioural reaction = ?

Sophisticated investment varies from country to country. While some enjoy moderate capital growth and high rental returns, some have low rental returns that barely meet the cost of the property but enjoy exceptional capital growth.

By Scott O. Talbot

So where do we find the balance?

In an age where journalists are constantly under pressure from their editors to publish sensationalist headlines and capture readers attention, the facts can only be interpreted when you cut out the hype and opinion.

Capital growth charts often show peaks and troughs that seemingly portray alarming losses, when in fact what occurred was huge growth tempered by a slight cooling. But that doesn’t count for much if a journalist uses a percentage graph. The casual observer can easily be misguided and believe the hype.

A two percent drop in value followed by a 10% rise in capital growth equals an overall increase of 8%. Some will only see the drop while a seasoned Australia real estate investor clearly discerns an 8% gain and opportunity.

- 澳大利亚房地产 - 共享好运

Australia real estate capital growth