Rich Harvey

But it's also the layout, the number of bedrooms that you've got in the home, because the more bedrooms you've got, the higher the rent that generally applies.

As I said, there's no one size fits all.

Your individual strategy is going to depend on your financial position.

I like to have a mix, Craig.

I like a mix of positive cashflow and high growth properties.

The positive cashflow is great for providing serviceability.

The banks really love to see strong cashflow and it helps me to hold and service the property and provide extra income to pay down the loan and provide serviceability to buy other properties.

But on the other hand, it's the capital growth of the property that really accelerates your wealth position.

If you get a positive cashflow of say five grand a year, that's great.

But if I can get a capital gain of 100,000 or even 150,000 or more a year, that's just a phenomenal amount of growth in one year.

That basically is manufacturing equity that then provides the deposit for my next property.

And that's how I've built my portfolio.

Each time I've got additional capital growth,

I go back to my broker and I say, look, this property's gone from 600 to 700 or 750.

I'd like to use that money and draw that down as a deposit for my next.

And then I recycle my equity to get to the next one.

I've bought properties where I've covered in a balcony area to create an extra bedroom.

I've added granny flats, carved off the back of the house to make a separate dwelling.

And getting that secondary income to really boost the rent has really done wonders for my portfolio.

You don't have to choose between capital growth and cash flow.