1. What is Capital Growth?

Capital growth refers to the increase in value of a property over time. It's a key measure of investment performance in the Australian real estate market, representing the percentage change between the purchase price and current market value.

2. How Does the Calculator Work?

The calculator uses the capital growth formula:

Where:

• Current Market Value — The present worth of your property in the market (AUD)
• Initial Purchase Price — The original price paid for the property (AUD)

Explanation: This formula calculates the percentage increase (or decrease) in your property's value since purchase.

3. Importance of Tracking Property Value

Details: Monitoring capital growth helps Australian homeowners and investors make informed decisions about property holdings, refinancing opportunities, and investment strategies in the dynamic real estate market.

4. Using the Calculator

Tips: Enter both values in Australian dollars (AUD). For accurate results, use current market valuations from recent sales or professional appraisals in your area.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good capital growth in Australia?
A: Generally, 4-7% annual growth is considered healthy, though this varies by location, property type, and market conditions.

Q2: How often should I calculate capital growth?
A: Most investors check annually, but during rapidly changing markets, quarterly assessments might be beneficial.

Q3: Does this calculation include renovation costs?
A: No, this is a simple percentage calculation. For return on investment including improvements, you'd need a more comprehensive calculation.

Q4: Are there taxes on capital growth in Australia?
A: Yes, capital gains tax may apply when you sell an investment property. Main residences are generally exempt.

Q5: Where can I find accurate current market values?
A: Professional valuations, recent comparable sales in your area, or online valuation tools from major real estate websites.