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When we talk about capital growth, we’re basically talking about how much the value of a property goes up over time. So, if you own a house or an apartment, capital growth is all about how much it becomes worth more in the future.
Well, there are a few things that can make a property’s value go up. One big factor is how many people want to live in the area where your property is. If lots of people want to live there, that’s good for your property’s value. And of course, how many houses are available in that area also matters – if there aren’t too many, it can drive up prices.
There are some other things to consider too. Like, what’s the average income of the people living there? How old are they? Are most of them homeowners or renters? And has there been a history of property values going up in the area? All of these things can affect how much your property’s value grows.
If you want to know how much your property’s value might go up in the future, there are calculators that can help you estimate that. It’s a handy tool for investors who want to see if buying a property is a good idea or not. Just keep in mind that looking at short-term changes in property prices, like what happens in a few months, can be tricky because big sales can make the numbers jump around a lot. So, it’s often better to focus on the long-term picture.