PropertyMetrics
Calculators • Strategy

Yield vs Capital Gains

Compare which investment strategy delivers better returns over your holding period.

Updated May 2026 Data: MBIE, LINZ, RBNZ Free — no signup
Quick strategy presets
City presets
Property Value
$
Weekly Rent
$
Annual Expenses
$
Rates, insurance, maintenance
Capital Growth Rate
%
% per annum
Your Deposit (optional)
$
Shows the return on your own money, not the whole asset
Holding Period
Selected: 10 years
Strategy assumptions
Property Value$750,000
Annual Rent$33,800
Annual Expenses$8,000
Growth Rate5% p.a.
Holding Period10 years
Gross Yield4.51%
Better return
Capital Gains wins
Projected advantage over 10 years
+$213,835
Rental Yield
Gross Yield4.51%
Net Annual Cash$25,800/yr
Total Rental Income$258,000
Capital Growth
Growth Rate5% p.a.
Capital Gain$471,835
Value at Exit$1.22M
Cumulative returns over time
$0 —
Rental Income
Capital Gain
Strategy insight
At 5% annual growth, the projected capital gain exceeds accumulated rental income over a 10-year holding period.
Indicative only. Assumes constant rent, expenses and growth rate. Past performance does not guarantee future results.
Indicative comparison
Not financial advice
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NZ-focused
Based on NZ market data
Returns vary
By market and conditions

Gross vs Net Yield

Gross yield is annual rent divided by property value. Net yield deducts expenses such as rates, insurance and maintenance. Net yield gives a more realistic picture of cash flow.

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NZ Capital Growth

NZ property has historically grown around 6–8% per annum over long periods, though this varies significantly by region and cycle. Past performance does not guarantee future results.

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Combined Returns

Most NZ investors benefit from both strategies — rental income covers holding costs while long-term capital growth builds wealth. The best property balances both.

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