If you're considering making your first property investment in Carnegie real estate, there are some terms that you will come across that pertain to how your investment property will work for you.
Depending on the type of income you hope to achieve from your properties, you'll come across either capital growth or rental yield.
Capital growth is the term used in real estate to label the increase in value of a property over a certain period of time. This is how much the value of a property has changed since you've owned it, and can be a key indicator of when to sell in order to make a profit.
Naturally, the higher the percentage increase, the more profit you will earn from the property over your original investment amount. This type of investment property can be worthwhile, but it can often take a decent amount of time before you see any results.
On the other hand, rental yield is the term applied to the annual income received from tenants who have moved into your investment property. These payments are usually received a weekly or fortnightly and can be considered a regular source of income.
If you're considering investing in real estate in Carnegie, get in contact with Matthew Hurlston at Ray White Carnegie to get professional advice about your investment options in the area.
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