Capital gain The 72 rule

Capital gain

The 72 rule is the number that you divide by to determine how long you get your investment back (or how long it takes a property to double!! in value) i.e. with property going up in value at 10 % per annum then the property will take 7.2 years to double. ( It then doubles again of course ) At 5% it will take 14.4 years to double. Property has pretty much been on a consistent close to or around 10% since these records have been kept. At 15% which has been happening lately it will take 5 years to double. So no matter which way you look at it properties double every 5-15 years!  A single $210,000 property could double in 7 years, that is $30,000 per annum!!, where a $420,000  property could double in 7 years, that is $60,000 per annum!!,

 

 

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