Property Investors, Remember The Number: 72

As an Investor, you may often ask, how long does it take for property to get an investment return? How long before I see growth in property investments? Often, experts would say that it takes around 7 to 10 years, but a good rule of thumb to follow lies on the number that all property investors should know by heart: 72.

Under favorable conditions, properties double the capital within 10 years. However, this is not the case for all. This is where the Rule of 72 comes in, where 72 is divided by the annual growth rate, giving you the number of years it takes for the property value to double. This equation gives investors the idea that the annual growth rates of 7.2% will double the property value in 10 years.

Although there are a lot more factors to be considered in property growth, this equation is a handy formula to keep in mind so that investors will have a rough estimate to compare with their investment goals.

Read more about this on the Property Observer website.