When you invest for capital growth you acquire wealth through the ownership of assets. And this can grow exponentially if you start correctly.

An asset is something that provides the following three things:

  1. Income (it has to be able to generate some income to offset the costs of acquiring and maintaining it)
  2. Leverage (a security value on which you can rise a high proportion of the finance needed to acquire it)
  3. Capital Growth (confidence that the value of the equity developed by the asset will rise – this will enable you to acquire more assets)

Unlike investing for cash flow, investing for capital growth allows you acquire wealth through property.

It’s a very simple structure and throughout the completion of this study pack, you will come to know more about investing for capital growth and how to do so.

But, to clearly explain, investing for capital growth is not rocket science. It’s quite simple after you know what you are doing.

You simply purchase a property that you are confident of generating capital growth, then you wait for the equity to rise in value. While this is happening, you enjoy the income the property provides you through rent returns. Once the property has enough equity, you can use it as leverage and then purchase another property.

You repeat this step over and over and over again, building your empire as you go.

If you already have your first property, say that you own the home you are living in at the moment, then congratulations! You have got past the hardest big of being a property investor – getting the first property!

There is no point in trying to sugar coat it! Buying your first property is the hardest part of property investing.

But once you have one, you can just wait for its value to rise and then use the banks money to buy the next, and the next, and the next. But there is no avoiding it – you simply have to find the cash.

After you have your first property, then it’s an exponential growth from there. The key is duplication, one property becomes two, two become four and so on…

Let’s delve deeper into this:

When you have one property going up in value and building equity, you can then leverage that property and purchase another one. So, if you then have two properties going up in value and building equity, then each of those properties will give birth to one property each, thus growing your portfolio by 2 more properties.

Can you see how the growth is exponential?

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