Capital growth

Capital growth is the appreciation in your property's value over time, separate from any rental income it generates. AU residential property has historically delivered around 6-8% per year long-run capital growth across major capital cities, though with huge variation by suburb, time period, and market cycle. Investors targeting growth typically tolerate lower rental yields and negative cashflow in exchange for higher long-term returns through equity build-up. The trade-off is that capital growth is unrealised until you sell (or refinance to access equity), it's not guaranteed, and high-growth markets are by definition more expensive to enter. Yield-focused investors and growth-focused investors typically buy in different suburbs and cities.