Burwood Brickworks, VIC
Rental yield VS. Capital growth Another thing to account for when choosing a property is whether you want to reap capital growth or rental yields. While there are some properties out there that can give you both, most properties are geared towards one or the other.
Capital growth Capital growth refers to the increase in property value based on changes in the market. Choosing properties with potential for high capital growth is a longer-term approach to property investment as significant capital growth will take a number of years to build. After a certain period of time when the home has increased in value significantly, you can either sell the property or use the equity built within the asset to refinance and reinvest in further opportunities.
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Rental yield vs. Capital growth
Rental yield Rental yield refers to the returns received through the rent collected from tenants of an investment property. To calculate net rental yield, you will need to calculate all ongoing costs of the investment and compare these with the rental income you will receive from the property.
Why invest in Australia
