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    2/24 Flower Street, FERNTREE GULLY VIC 3156

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  • 1/31 Alma Avenue, FERNTREE GULLY  VIC  3156

    1/31 Alma Avenue, FERNTREE GULLY VIC 3156

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    3 Grevillea Avenue, BORONIA VIC 3155

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Email: wantirna@hillre.com.au

   

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Jul 9th, 2013 

Three key investment terms

Posted By Darren Hill in Blog

Those considering investing in any form of property will continually see a couple of terms used to discuss the investments performance, namely; capital growth, investment return and gross rental yield.

Capital growth. The term capital growth is often used in real estate to describe the increase in the price or value of a property. For instance the median price of a 3 bedroom house in Coburg in the March quarter of this year was $629,000 and twelve months ago it was $625,000. Therefore the capital growth is the difference between the two, $629,000, divided by the earlier figure, $625,000, which equates to 0.64 per cent over a year. Capital growth is also known as capital appreciation.

Investment return. From a real estate perspective the term investment return is very similar to the capital growth figure.  It is the percentage of change in value of the investment over a given period of time.

Gross rental yield. Gross rental yield is a term that is frequently used to compare the investment return on a property investment. To calculate the amount you divide the yearly rental income by the purchase price of the home. For instance the yearly rental income on a 3 bedroom house in Coburg is $21,580 and the median house price is $629,000 resulting in a gross rental yield of 3.43 per cent.

Investors who are looking for comparative data on the investment potential of different homes will find that the REIV is able to assist, just visit www.reiv.com.au to find out more.

Darren Hill
Director/OIEC Wantirna Office
9800 0700
Email
Darren has lived in the local area for over 20 years. Darren Hill the director and founder of Hill Real Estate himself entered into real estate in 1990. The passion for meeting people and helping people is still Darren’s driving force. After starting his career in franchise companies as an awarded salesperson his vision to be a truly independent agent was shortly realised. His continual drive to improve with a prominent central position are the ingredients to achieve the most respected agent in the City Of Knox/Foothills. Darren believes a career in real estate is rewarding for the people you meet who welcome you into their lives and the sobering experiences and maturity gained from those relationships. Darren is a Past President and current active member of Rotary Club of Knox and received a Paul Harris Fellow in recognition of service. Darren’s passions are his family and motor racing. To experience the Hill Real Estate difference please contact Darren on 9800 0700.
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