Capital growth
Capital growth is the increase in a property's value over time — the other half of total returns alongside rental yield.
NZ house prices have historically cycled — strong runs, flat periods, and corrections — with long-run growth driven by land scarcity, construction costs, and credit conditions. Growth and yield usually trade off: high-growth locations tend to have lower yields and vice versa. Your strategy determines the mix; chasing both in one property is rare.
Want a mentor in your corner? Wealth Mentor pairs everyday New Zealanders with experienced property investors — group coaching or 1:1 mentoring.
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