Rich Harvey

Well, look, let's cover off the fundamentals first, Craig.

So property investment generally returns a return for the landlords two ways.

One is through rental return, that's your yield, and the other is through capital growth.

So the yield or the cash flow, that refers to the income that your property is generating.

And it's normally expressed as yield, which is a percentage of the rental income you earn for every dollar of the property's value that you purchase.

So I'll give you an example.

Let's say you buy a property for $600,000.

and the tenant pays you $500 a week.

That equates to $26,000 a year in rent.

So what that means is that'll equate to an annual gross yield of 4.3%.

So that's how we express yield or cashflow.

On the other hand, capital growth or capital gain is expressed as a percentage of the property's value.

If you bought that property for 600,000 at the start of the year,

And in 12 months time, the property had risen to $660,000.

That's a $60,000 gain.

That's a 10% increase in capital value.

So they're pretty simple concepts to understand.

Look, I disagree.

I think you can have both.

You can have your cake and eat it too, but to different degrees.