Capital growth is the money you make as the value of your property appreciates. While there's no guarantee your property will gain in value, historically property has experienced steady growth. According to many investment analysts and commentators, the long term growth in the value of residential property has been better than shares, commercial property, or bonds, cash or fixed term investments.
Residential property is also much less volatile than the stock market. That makes it easier to live with for many people. And it is much easier for the ordinary person to understand. So you can quickly become comfortable with making your own decisions and looking after your own investment.
The key to investing in residential property is doing it for the long term. Some advisers suggest a minimum of seven to ten years. Others suggest a range of 15 to 20 years to gain the maximum advantage of the long term cycle. All agree that property is not a get rich quick investment. It repays patience, and it rewards good preparation and careful management.