Capital Growth vs. Rental Yield

In your property investment journey, you may have heard of capital growth and rental yield, but what are they really? Capital growth and rental yields are two ways you can make money as a property investor; so, they are essential to understand before you look and purchase a property to maximise opportunities.

Capital growth is the appreciation or increase in the value of an asset or investment over a period, aka your initial investment amount grows over time. Rental Yield is the difference between the income you receive from renting out your property minus the overall costs of your investment.

It might be tempting to choose one over the other but there is no ‘right’ answer or a simple one-size-fits-all piece of advice.

🎥: @AMVisuals.au

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