I've just attended an Australian Masterclass event with an agency. "Capital growth is the way to riches, yield gives you holding power"
I've always been a follower of yield and not depend on the upside growth. Today, within 4.5 years of investment. I've grown from 40k cash to now owning 7 properties. Although my earnings are around 400k within these period, I stress to say that without consistent income coming in from my rental, I would have stopped at 2 or less and get stuck.
Today, I'm aiming for 2 million in property portfolio and equity of 900k, simply by being able to buy and being able to hold. That is each property must help to own other property by providing cash-flow to reduce expenses.
Lets take for example, a person earning $5000 a month with $2000 expenditure.
He manages to save up $3000 a month for a period of time and accumulated $120,000. He buys a off-the-plan property. He will get stuck while waiting for its completion. No income. So he starts to save for the next pot of money. Consider if he have to pay a slight outflow each month to hold his property... say $300, he would have $2700 left. It takes time to growth his equity and all these years say 5 years would have passed and he is stuck and cannot grow his portfolio.
Put it another way, he bought a rental property that gives him $300 a month straight. His income would have increased by $300. If he could raise more equity to buy more units and use the rental income to cover interests and outgoings, he would earn say $50 extra a month. Keep rolling over 5 years, he would be financially free and obtained equity. Slow capital growth is not important as his nett rental income could already enable him to be financially free and allow himself a greater risk to take!
Think about capital vs yield. I say Yield!