Hi Steve,
although a very new player, my humble opinion is that it truly depends on your goals. By that I mean is it a ‘short term immediate gratification’ kind of thing, or is it a patience long term security’ type thing.
Option A entails generating that lovely positive income we all know and love, which enables us to go and do more of whatever we’re hoping to do. Be that financing more property, buying a nice car, quitting work to spend more time with your family, and so on.
Option B entails the careful selection of growth properties and tennants that will grow in capital/equity over a longer time period (10+ years) that will finance retirement and also bring in income, but slightly less over the early years.
That is a general idea, and one that is my interpretation for sure, there’s still much I have to learn about it all, but there you go.
Does it matter? Only to the individual and their goals.
Me? I want to try and find a nice balance of both. I’m going to try wrapping first to finance some bigger better more likely to grow type properties, as well as some ‘right here right now’ money for me and my new family.
Cheers
Matt
