Capital Growth

Capital growth is a common term used to describe the increase in the value of your property over time.

The capital growth in the Perth median house price, for example, has risen at an average of 12% per annum over the last ten years. It’s a good idea to check on the capital growth of property in the area your subdivision will take place – the easy way to do this is to click onto the REIWA website.

Remember, if you’re investing in property and not using it as your principal place of residence, any capital growth realised on the sale of that property can attract a capital gains tax. You should talk to your accountant about the tax implications of any investment property.