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What is “capital growth”?

Capital growth (also called a capital gain) is the increase in the value of a property over time. It is the difference between the purchase price/cost and the sale price of the property.


Property purchase price on 1 January 2020:
R2 000 000
Property sales price on 1 January 2022:
R2 500 000
Capital growth: 
R500 000

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