Back to: Our model explained
As a rule, we like to refurbish for immediate forced appreciation. As soon as you have maximized rental income and forced the property price up you can rest easy and start to look for property number two!
But what about natural equity or capital growth? Many investment gurus will teach you that long term growth is the 'icing on the cake' and must not be relied upon.
Whilst we agree that you should never reply on equity growth as income, we do think it's a huge mistake to ignore it altogether.
Too many investors chase yields and then complain when their property has dire long term growth. The fact is, property does go up in value over time and buying wisely allows for superior yields and long term uptrend.
We target a class of very high cash flowing properties and then filter that search to those which have enjoyed the healthiest historical price rises. The idea being that some property 'types' tend to rise in price more than others. A three bedroom house near a school in a gentrifying area would be one obvious example.
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