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seqldpropertyfollowshare
6-23-2009 12:34 AM
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Helpful and friendly Advice on Investment Properties.
Q3 Historically, what happens investment-wise with residential real estate?

It is the compounding effect of property value increases which is so powerful. As each year passes growth occurs on top of growth. If a property is worth $100,000 today and next year it increases in value to $110,000, then the year after that if it increases at 10% again the value will be $121,000, that is $110,000 plus 10% (or $11,000) and on goes the escalation. Its exponential growth accelerating at a faster rate as each year passes.To use a well worn gardening analogy, it is a little like planting a tree. Early growth is slow, but as it establishes itself it grows faster, and starts to fruit. The fruit drops, and more trees grow and start bearing fruit. Before we know it, we have an orchard. It is a similar kind of compounding effect with property.
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