What is Capital Growth?
Capital growth refers to the increase in a property’s value over time. This is where long-term wealth is typically built – through equity.
For example, if you buy a property for $700,000 and it increases to $850,000 over several years, that’s $150,000 in capital growth.
Capital growth tends to occur in:
- Areas with long-term population and infrastructure growth
- Properties with land value or unique appeal
- Locations close to transport, jobs, and amenities
Capital growth is ideal for:
- Long-term investors focused on building equity
- Buyers using equity to fund future purchases
- Wealth creation strategies over 5–15 years
Should You Choose Capital Growth or Income?
The best investment properties offer a balance – strong rental returns to help hold the property, paired with capital growth potential to build long-term wealth.
That said, in some market cycles, one strategy may take priority:
- In higher interest rate environments, positive cash flow (high yield) can be crucial for serviceability.
- In rising markets, capital growth potential may outweigh short-term cash flow considerations.
Finding the Right Balance
At Crest Property Investments, we assess every property with both rental yield and capital growth in mind. This includes the following to only name a few:
- Reviewing local vacancy rates and rental demand
- Analysing infrastructure pipelines and population forecasts
- Assessing developer quality and estate planning
- Comparing purchase price to long-term value projections
We help our clients identify properties that not only perform today, but also deliver consistent growth over time.
Final Thoughts
Whether you’re chasing rental yield, capital growth, or a blend of both, the most important factor is that your investment aligns with your personal financial goals.
If you’re starting out and need your property to cover its own costs, high yield may be the priority. If you’re building a long-term portfolio, capital growth will often drive the biggest gains.
Need help finding the right balance? Crest Property Investments offers a tailored, end-to-end service to help you make smart, well-informed investment decisions.
Let’s start the conversation – your next opportunity may be closer than you think. If you’d like some assistance sourcing a brand new or off the plan property, please don’t hesitate contact us.
We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
October 2025
