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  • Property Prices

    A landlord's thoughts on capital growth

    Interesting conversations however I am on the DL side of the fence. Yield has been and is key to me although I predominantly invest in commercial property with a mix of shops and flats and the rate of borrowing is higher than residential BTL however the more return you get the more margin there generally is for you which then helps you accumulate more funds quicker to reinvest in more property. Property will always go up as time goes by as money devalues . Everyone has their own strategies but yield or return as I prefer to call it in my opinion after some 20+ years in property is very important more so than focusing on capital appreciation which will happen anyway !
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    A friend of mine invested in the US, Phoenix Arizona to be precise -- He bought around 2007, when average prices were around $240,000, he sold in 2012, when prices had dropped to below $100,000.   

    https://www.trulia.com/real_estate/Phoen...et-trends/

    Prices are only now climbing back to pre-2008 levels. The problem there was a classic boom-bust cycle, exacerbated by the cirsis of course.

    On the other hand, had he bought in 2012, he'd now be looking at well over doubling he house price (and depending on his deposit, a much bigger multiple of his actual capital).   

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    Great conversation piece DL and congratulations to yourself and your friend on a very healthy capital on said properties. All investors are different and concentrate on different benefits when looking to invest on a property. I think either way capital growth will also be achieved how big or small the growth is. Thank you for sharing, I’ve really enjoyed reading through the comments.

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