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Wealth & Investment

Capital Growth

The rise in a property's value over time — as distinct from rent.

What is Capital Growth?

Capital growth is the increase in a property's market value over time — what your asset is worth, as opposed to what it earns you in rent (yield). Over long horizons, capital growth drives most Australian property returns.

Why it matters for you

High-growth locations (inner capital cities, tight supply) typically offer lower rental yields. High-yield locations (regional, outer suburbs) often offer weaker growth. Most investor strategies lean one way or the other — rarely both.

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Related terms

Annual rent as a percentage of property value. Gross or net.

Wealth & Investment

Priced higher than owner-occupier. Structure at origination saves years later.

Wealth & Investment

When holding an investment costs more than it earns. Loss is tax-deductible.

Wealth & Investment
Last updated: April 2026