Generating good capital growth from your investment property comes down to two key factors; location and price.

As not all suburbs have the same levels of capital growth, you need to decide on an area that has strong growth potential. Do some basic research and look at the key characteristics behind well performing areas.

It’s likely you’ll notice that the suburbs that have performed well in the past are those with good infrastructure and are close to local facilities and transport options. This still applies today.

A history of strong capital growth is often a good sign of future growth for an area. Areas with low vacancy rates and a limited supply of properties are also known to have higher capital growth rates.