Tag: Compound

Compound Growth and the Snowball Effect

Snowball Effect

Following on from my last post about leveraging your savings or equity, I am going to demonstrate the Snowball Effect, where the growth of an investment property is allowed to compound year after year.

Compound Growth simply occurs when the growth of your asset from one year is added to the previous balance and the combined larger asset value is exposed to further growth the following year, and so on.

Continue reading

Increase your wealth using Leverage

Leverage

One of the most attractive elements of property investing is the ability to Leverage a smaller amount of your own money to control a much bigger asset. Banks will allow you to fund the deposit on a property purchase and lend you the balance in return for paying them regular interest.

Continue reading