Latest / TFS WealthCast / Capital Growth and Rental Yield: What Investors Overlook
Transcript
- 0:04SPEAKER_01: This is the TFS Podcast where money target real and financial freedom is more than just a goal.
- 0:12SPEAKER_01: Without further ado, let's dive in.
- 0:17SPEAKER_00: Investor type explain series.
- 0:19SPEAKER_00: We are getting right to the end of it now.
- 0:23SPEAKER_00: Let's talk about the fourth investor type.
- 0:26SPEAKER_00: This one is focused purely on capital growth and rental yield, nothing else.
- 0:32SPEAKER_00: Now don't get me wrong, those two are absolutely important.
- 0:36SPEAKER_00: Capital growth builds wealth, rental yield supports cash flow.
- 0:43SPEAKER_00: But when that's all you look at, you risk missing the full picture.
- 0:48SPEAKER_00: These investors often don't understand the value of diversification in ROI.
- 0:55SPEAKER_00: They skip over properties that could offer huge tax advantages, ignoring that could reduce non-deductible debt, and forget that exit planning is just as important as the entry point.
- 1:15SPEAKER_00: Many of them have done courses, some good, some generic, and they walk away thinking one thing matters more than everything else.
- 1:29SPEAKER_00: High yield, high growth, that's it.
- 1:34SPEAKER_00: But here's what happens: they miss properties that could have reduced their taxable income, they miss depreciation benefits, they miss structuring options that could have helped them pay off their own home faster or improve their overall borrowing power.
- 1:54SPEAKER_00: And then down the line, when they decide to sell, they get hit with capital gain tax bill they didn't plan for.
- 2:04SPEAKER_00: Oh dear.
- 2:06SPEAKER_00: How many times I have come across customers?
- 2:10SPEAKER_00: My investors come and say, Hey Bramu, what do I do with this CGT?
- 2:15SPEAKER_00: Now I have to pay this amount of tax.
- 2:18SPEAKER_00: I don't know what to do.
- 2:19SPEAKER_00: What can I do?
- 2:21SPEAKER_00: You're a little bit late, pal.
- 2:23SPEAKER_00: You should have done your planning, exit plan a little bit earlier than this.
- 2:30SPEAKER_00: No offset, no strategy, no warning.
- 2:33SPEAKER_00: CGT is like that.
- 2:37SPEAKER_00: What they don't realize is this the smartest investors I've worked with, they combine all the levers growth, yield, tax benefits, cash flow strategy, and most importantly, the exit plan.
- 2:55SPEAKER_00: Because wealth isn't just made when you buy the property, it also made in how you hold it and how you eventually exit.
- 3:08SPEAKER_00: Now we look at every angle, not just the numbers on papers, but how they play out in real life across multiple properties over time with real tax outcomes and debt debt strategies, that has to be in your plan.
- 3:27SPEAKER_00: So if you are investing based on growth and yield alone, that's a good start.
- 3:33SPEAKER_00: But if you want to build a portfolio that performs, protects, and pays back, you know where to talk, you know where I work at TFS.
- 3:45SPEAKER_00: Give me a call or give any of my team members a call.
- 3:49SPEAKER_00: We will help you because we know what we are doing, and we could and also we have done the same thing.
- 3:57SPEAKER_00: And in fact, I'm currently doing the same thing.
- 4:02SPEAKER_00: I'm building my portfolio in a sustainable manner.
- 4:06SPEAKER_00: So, you want to talk?
- 4:09SPEAKER_00: Give us a ring.
- 4:12SPEAKER_01: Thank you for tuning in to another episode of the TFS Podcast where we turn knowledge into action and big goals into real results.
- 4:21SPEAKER_01: Now, don't forget to like and subscribe and share this episode with someone working towards their next financial step.
- 4:31SPEAKER_01: Now with that being said, until next time, keep building.