What is Capital Growth?
Capital growth has to do with the increase in the value of any capital assets that are current part of the financial portfolio. Essentially, the goal of acquiring assets is to achieve a level of appreciation or growth that will keep the value of the asset ahead of the current rate of inflation. One of the easiest ways to understand capital growth is by looking at the acquisition of a piece of property. Initially, the property will be purchased at a rate that is considered to be a fair market price. The expectation is that as time passes the property will increase in value at a rate that is at least equal with inflation. Along with acquiring the property, the investor may also take some additional steps to help along the process of capital appreciation. Buildings may be erected on the property, or existing structures updated and enhanced. Making improvements to the asset is an excellent way to realize a market price increase. Other factors that are outside the control of the investor, s
Capital growth is the increase in value of your property portfolio over time and should be considered alongside the property’s yield. Melbourne and Sydney, in particular, have had periods that have seen many home owners with properties that have, in some cases, doubled in value over a short period of time. While there is no guarantee your property will gain in value over any given period, and capital growth largely depends on where and what you buy, historically real estate experiences steady growth over the long term. To learn more about Capital growth in your area of interest you should talk to an expert. API has access to sales results and information that is not immediately available to the public. Our job is to find, deliver and negotiate property that will achieve good capital growth over the long term after researching the historical data of the chosen area. If you have any questions regarding capital growth call Australian Property Investor now on 03 9533 2255 or email us for a
