Capital growth also called capital appreciation refers to the increase in the value of your investment property over time.
When you were 40 years old you bought an investment property for say, $500,000
To be very conservative at just 5% P/A growth – after 20 years the property is worth $1,326,000 so the Capital Growth on this property was $826,000.
You are now 60 years old and have achieved this result without lifting a finger.
You have made have an extra $826,000 for yourself ($40,000 year) with no work & no cost to you.
But it gets better because during you working life you did this 4 more times
So you now have 5 investment properties (4.1 million dollars total) with similar scenarios PLUS your own family home which was paid off along the way.
Let’s say the investment loans were interest only – you sell a couple & pay the others off- now you have debt free investment properties with rent coming in which keeps up with inflation.
The potential is there, so give us call & let’s start the conversation.
The surest way for this not to happen for you- is to never start the conversation!