Property Investment

Rental Yield vs. Capital Growth

September 30, 2026 7 min readBy Elise Marchetti
Rental Yield vs. Capital Growth

Property returns come from two sources: ongoing rental income and long-term appreciation.

Rental yield is the annual rent as a percentage of the property's value — a cash-flow metric.

Capital growth is the increase in value over time — a wealth-building metric.

Markets with high yields often grow more slowly, while high-growth areas may start cash-flow negative.

Your strategy should match your goals, timeline, and risk tolerance — we help you model both.

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