How to Transition Your Portfolio from Growth to Cashflow | Ep. 185

In this episode, we discuss how to transition from a capital growth property portfolio into a positive cash flow portfolio. 

This is a topic Andrew recently covered on a webinar with the Auckland Property Investors Association. 

An investor would typically start to transition their portfolio as they near retirement, and in the episode, Andrew suggests that you should allow about 5 years for the transition. 

Allowing several years allows you the ability to sell at the most convenient time in the market. 

The reason your property investment portfolio will likely need to transition is that when you start in property investment, most investors will focus on capital growth properties. 

These properties increase in value quickly but produce weaker rental yields. These properties are good for long term investors as they will grow wealth more quickly. 

But, as investors near retirement, your time horizon shortens. That means that investors want their portfolios to begin producing passive income. Hence, the transition to higher-yielding properties that can provide that income most efficiently. 

We also mention the property investor quiz. This 7-question quiz will give you a 'yes', 'no' or 'maybe' answer about whether you are in the financial position to invest in property.