Mortgage Knowledge Base
Capital appreciation refers to the increase in the value of a property over time. For example, if a property is purchased for £300,000 and its value increases to £450,000 after a period of time, the capital appreciation is £150,000.
Capital appreciation can be an important factor to consider when buying a property, as it can affect the overall return on investment and the ability to sell the property at a profit in the future. It’s a good idea to research the local housing market and consider factors that may affect capital appreciation when deciding whether to buy a property.
