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The Property Podcast

ASK264: Does rental income or capital growth give the biggest gains? PLUS: What’s the minimum yield I should accept?

The Property Podcast

Rob Bence & Rob Dix

Business News, Education, News, Investing, Business

4.82K Ratings

🗓️ 1 December 2020

⏱️ 7 minutes

🧾️ Download transcript

Summary

We’ve got another two great property questions on Ask Rob & Rob this week. The first question this week is from Argent. Argent wants to know where property investors can make the biggest gains. He knows Rob & Rob tend to focus on capital growth, but he thinks it’s more the income that gives the biggest gain, as this is the cash that hits your bank account each month.  Listen as Rob D takes us on a mini history lesson while drawing on his own personal experience. Yes, you need to have a bit of faith for capital growth but today Rob explains why both are equally as important.  You can also deliberately tilt your portfolio in the favour of one or the other. How? Listen to find out.  The second question comes from Daniel. Daniel is a long-time Property Podcast listener and he’s looking to get his first property.  He’d been focusing on the ‘ideal yields’ of between 8-10% but when he’s running the numbers, he’s finding the best he can get is 6% or lower. He’s wondering if he bought at 6% whether it’d be a huge mistake.  Rob B takes the lead with this one (as Daniel specifically used Liverpool as an example). Listen as he talks Daniel through what to look for in his next deal and how it’d affect yields. He also explains how to focus on location and consider the pros and cons of desirable vs less desirable places.  The difference of an extra % or two on the yield could be minimal in the short-term but a winner in the long-term. Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply).    Or if you prefer, click here to leave a recording via your computer instead. The next question on Ask Rob & Rob could be yours.  Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself. See omnystudio.com/listener for privacy information.

Transcript

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0:00.0

Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.

0:05.2

Hello everybody, welcome to Ask Rob and Rob.

0:10.3

It may be getting a bit dark outside. You know what? We'll try to lighten things up here with another episode of Ask Rob and Rob. The show where you give us your wonderful questions. And we try to give you some illuminating answers but for that to happen and for this

0:24.4

road show to carry on you need to get your questions in so how do you do it?

0:28.6

Well it all starts with the voicemail and there's two ways of doing it you can either

0:32.1

give us a call on

0:33.0

oh one three eight oh eight triple oh three five or you can go to property hub

0:36.8

dot net slash ask just record your question there rerecord if you get it wrong it's

0:41.1

totally fine then it'll magically wing its way over to

0:43.6

us and in the fullness of time we will provide an answer just like we're about to

0:47.4

for Arjun.

0:48.4

Hi Robin Rob Arjun here thanks for all that you do for us.

0:54.0

It's really, really helpful.

0:55.0

It's made a massive impact, especially on my learning about property.

0:58.0

I want to ask both of you a question about where investors make the biggest gains in property.

1:04.1

Both of you always mentioned the biggest gains are made in capital returns,

1:09.5

but I would have thought it's actually an income simply because you get that

1:14.0

into your bank account each month or each quarter.

1:17.0

I would like to really sort of hear about your thoughts on this.

1:21.0

Thanks for all the help.

1:22.0

Keep it up. Cheers. Thank you all to help keep it up.

1:22.8

Cheers. Thank you for this question I'll really enjoy this topic so I'm glad you asked.

...

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