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Understanding Investment Income: Rental Yields Versus Capital Growth

By Adrienne McTavish

Investing in property can be a fantastic way for you to help supplement your income, but before you begin looking into houses for sale in Bulimba, there are a couple of different terms that you will come across which pertain to how your investment will work for you.

Depending on the type of income you wish to achieve from your real estate, you'll become familiar with the terms capital growth and rental yield.

Capital growth is the term used to label the increase in a property's value over a period of time.  This is to indicate how much the value of the investment property has changed while you've owned it, and is the key indicator of when to sell in order to make a profit.

The higher the increase, the more profit you'll gain over your original investment. While this type of investment can be worthwhile, naturally it takes a long time for the value of the property to increase significantly.

On the flip side, rental yield is the term applied to the income received from receiving rental payments from tenants in the property. These payments are received more regularly and can be considered a source of regular income.

If you're interested in investing in Bulimba real estate, get in contact with the team at Ray White Bulimba!

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