In this report, I use numbers from my area in the world ... I know they do not apply all over the world, but they should encourage you to get the numbers for yourself.
After all, no report will come to make your money grow ... its the knowledge you get and your knowledge application that will make your financial wealth grow.
In another report, I gave you a concept I borrowed from Phil Ruthven, a wonderful economist, about how he sees home.
Now I want to look at the tools we have access to help us grow Real estate assets,
So people, if you want real estate development, you must use all the tools available to you to get a little. Of all the tools you have is the single most important TIME.real estate wealth,
In Australia, it has been infiltrated in our consciousness that we all must have our own home. And there is nothing wrong with the concept. Its just that we should have been told to rent it out Do not live in it.
By buying a house to live in while we are young, we waste the wealth generating tools for time, double income, about poison property income and tax deduction. No wonder so many people have to play back later in life. property assets,
So the first clue to Real Estate Wealth Development is not to buy a residential property for you and your partner to live in. You buy a house as an investment and you rent elsewhere.
Growth tool No. 1 time
Time is your biggest friend. Real estate is a long term investment and by being loyal to it, the property will reward you nicely throughout your life. property assets,
You can prove this to yourself, as I did, by getting the average house sales prices, from the Australian Bureau of Statistics for Brisbane, the largest city in Australia.
To save you the trouble, I received the numbers and I carefully reviewed them to validate the old womans story that real estate doubles every seventh year.
Well, its better than what youre going to know.
I could get the numbers from 1973 over 74 to 1994 over 95. I think I started there because it was when I came to Brisbane on transfer from Melbourne. property assets,
It is a twenty five year period, during which we had several credit crunches, some recessions and some good times as well.
1973 over 74, the average house price for the whole of Brisbane was 23 234,00 USD. The average includes the best and worst house and suburb.
Seven years later, 1980 over 81, it was 43,470,000.00, an increase of 87 percent.
However, for the next year, eight years, it had risen to 56,757.00, which increased by 144 percent from 1973 over 74. So you see it more than doubled in the last eight years. property assets,
For another seven years from 80 over 81 to 87 over 88, 43 came to 470.00 up to 83,679.00 another 92 percent.
Interestingly, going for a year to eight years, it once again increased to 113,917.00, which gives an increase of 162 percent from 1980 over 81.
For another seven years from 87 over 88 to 94 over 95 the price of the average house in Brisbane went up to 163 325.00 an additional 95 percent increase.
Unfortunately, the presidency Logans and Cabooltures Shires merged into this statistical base and I could not extract the figure for eight years.
But on proof of the previous 22 years, I think its safe to assume
The increase would be at least 5 percent, making it an increase of 100 percent. property assets,
So these figures show that the asset over a period of 22 years has increased by seven times its original value and all you need to do is buy it at the beginning.
I hope this gives you an idea of why TIME is so important for growth. And keep in mind that Im talking about average prices, Im not talking about hot inner suburbs which of course will do much better.