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Updated over 15 years ago on . Most recent reply

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Rich Weese#2 Off Topic Contributor
  • Real Estate Investor
  • the villages, FL
3,498
Votes |
5,700
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OK-mathematicians, where are you??

Rich Weese#2 Off Topic Contributor
  • Real Estate Investor
  • the villages, FL
Posted

A reply on another thread made me wonder about something. Mikeoh mentioned fannie mae is showing 5% appreciation annually over the past 50 years on average. The Rule Of 72 says that to find out how long it takes to double your money, divide the % rate(5) into 72. Your money would double in 14.4 years.
Here is my question. At the same rate, what would be my value of property in 30 years when loan is paid off, with no extra principal payments?
If you put the standard 20% down as an investor, what would be your "annual " rate of return for the 30 years on the 20% down ? Much more than the 5% we've chatted about above!!
When someone posts the calculations, it will help the newbies to understand why we love this stuff. Leverage is truly an amazing thing, especially for those young enuff to enjoy the 30 year ride.
Now, what will your estate be worth if you buy one a year , each year for the 30 years??? Probably too difficult to calculate, but it might be enuff to stay ahead of the changes current administration is making... Someone, do the math for us. Thanks. Rich.

Most Popular Reply

User Stats

5,700
Posts
3,498
Votes
Rich Weese#2 Off Topic Contributor
  • Real Estate Investor
  • the villages, FL
3,498
Votes |
5,700
Posts
Rich Weese#2 Off Topic Contributor
  • Real Estate Investor
  • the villages, FL
Replied

It amazes me of how a thread like this gets such little attention from the newbies. Notice only 8 people have posted, and arguably most of those are the most experienced ones. I hope the ones that could benefit from threads like this are at least reading them , even if they don't post on them. This is the nuts and bolts to investments, imo, and that is why I started the thread... Rich.

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