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Why Invest
How does capital growth create more wealth?
Growth properties work over the long term. There is a term in finance referred to as compounding. When you really understand what compounding means along with another term in finance referred to as leverage, you will be well on your way to financial success. Let’s look at a basic example of a property worth $425,000
| Compound Growth | Value 10 years | Value 20 years | ||||||
|---|---|---|---|---|---|---|---|---|
| 4% Per Annum | $629,000 | $931,000 | ||||||
| 6% Per Annum | $761,000 | $1,363,000 | ||||||
| 8% Per Annum | $918,000 | $1,980,000 | ||||||
| 10% Per Annum | $1,102,000 | $2,859,000 |
When choosing an investment property, capital growth is certainly an important part of any decision,
however it is very easy to pick up a local paper and read a story on the negative effects
on the property market and the entire
world is about to crash.
The same day you can read another article and same time in the same local paper advising you that the property market is BOOMING! There is a war on misinformation out there.
Google can be a very good resource; however, it can also be a very dangerous tool. If you are extremely sick, Google is only so good before you really should seek specialist medical attention. The same is true when it comes to investing your hard-earned dollars. Specialist investment advice is critical to your investment decision.
