If you are new to the property investment space, no doubt you will have many questions you’d like answered! Questions like ‘How much should I invest?’, and ‘Where should I invest?’ are just a couple of the most pressing queries.
Consider this; a $400,000 property would be worth:
– $863,570 in 10 years’ time
– $1,268,868 in 15 years’ time
– $1,316,853 in 20 years’ time
A $600,000 property would be worth:
– $1,295,355 in 10 years’ time
– $1,903,301 in 15 years’ time
– $2,796,574 in 20 years’ time
A $800,000 property would be worth:
– $1,727,140 in 10 years’ time
– $1,534,579 in 15 years’ time
– $2,566,123 in 20 years’ time
It’s never too late to invest in property and realise the power of property investment and compound interest. For example; A 50 year old who invests in a $400,000 property can expect to have a property worth $863,570 at the age of 60. To put this into context, the average 60 year old Australian woman retires with only $140,000, and man on $290,000. Further, it’s never too late to invest! Even after capital gains tax, this property will net about $425,000 in retirement.
Property is assessed at 8% compound interest per annum, and the numbers you see here are really the power of re-investing the interest earned, year on year. Albert Einstein once said “Compounding is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it”.
While money will grow at a greater rate towards the end of its investment horizon, a 10 year term is still very powerful.
‘Understanding’ is something that most investors struggle to conquer. You can sit for hours researching in front of computer or reading articles but what is missing is the experience. The experience to understand what makes a property a great investment.
At Calla Property, we look at over 100 drivers of capital growth and rental stability to ensure you invest in the right property at the right time in the right place. If you would like us to help you invest well, call us on – 02 9016 2852