What is the leverage effect when my property doubles in seven to ten years?

What is the leverage effect when my property doubles in seven to ten years?

Lets look at a simplistic arithmetic without factoring in present values, compounding etc). If you put in a deposit of $60,000 to invest in a $300,000 property , borrowing approx 80% from the bank. And the property doubles to $600,000 in ten years time – you have generated capital growth or wealth of $540,000( being $600,000 less $60,000) over ten years. This is done with $60,000 initial outlay plus regular instalments generating $54,000 a year in increased wealth before discounting for inflation etc. If you have not started , you may not have any equity to look at in Year 10.

Start now. And a beautiful quote :

“took 22 years of slow and steady building – block by block – before the world received a gift called The Taj Mahal. And all wonders are like that – they take time. Lots of hard work. And time. We live in a miracle drug world. We all want what we want – and we want it fast. But great companies/relationships/lives are built over time. Small daily steps, over years, lead to stunning results.” — Robin Sharma