Capital growth
The increase in a property's value over time.
- Driven mostly by land value
- Shaped by supply, demand, income and infrastructure
- Past growth does not guarantee future growth
What drives it
Over the long term, land scarcity, population and income growth, infrastructure and limited new supply tend to support values. Oversupply and weak local economies hold them back.
Growth and equity
Growth increases your equity, which can fund the next purchase. It is only realised when you sell or borrow against it.
Nobody can promise growth, and anyone who does should worry you. Rothmore shows the evidence and the risks, not forecasts.
Common questions
Do houses grow faster than units?
Often, because houses usually include more land. It varies by market.
How is growth measured?
Usually by median price changes or index data, which can differ from an individual property's result.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.