Explaining Total Yield

Astute investors will almost always sacrifice some of their rental yield if they anticipate high capital growth in the location.

The problem is that lower yield means more money out of their pockets. 

These investors utilise a negative gearing strategy. They sacrifice passive income from the rent so they can later benefit from the sale of the property. Plus, there are a bunch of tax benefits from this strategy.

There’s still that issue of paying the costs of the property while you hold it week in week out. But there is also a way to minimise this cost! Speak to your accountant about a ‘tax variation’. 

The alternative is to go for a higher rental yield to cover the expenses. But this often comes at the cost of lower capital growth.

But then… there are the magic properties.

These offer high rental yields while growing in value.

They’re difficult to find… but you can create them!

And that’s where our optional part of the FHB Framework comes in – ‘#Supersize It’.

Our and #See it, #Set it, #Source it, #Slam it, #Supersize it, and #Stash it is the First Home Financial Freedom Framework helps you  find your first investment property in the right location.

Join our First House Buyer community to learn more about each of the steps to get you to 𝐘𝐨𝐮𝐫 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐒𝐮𝐜𝐜𝐞𝐬𝐬.