Compare which investment strategy delivers better returns over your holding period.
Quick Answer
Rental yield measures annual cash income as a percentage of property value; capital gains measure price appreciation over time. High-yield cities like Gisborne (7.5–8.5% gross) often have lower capital growth; high-growth cities like Auckland (3.5–4.5% yield) have historically appreciated faster. Neither strategy is universally better — it depends on your income needs, tax position, and hold period. Enter your numbers below to compare total returns from each approach.
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.
Learn more →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.
Learn more →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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