Added: 2 years ago
From: financeeducationserv
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  • You can easily get 12 percent from buying a house. If you have $100,000 then you can buy a $100k house and never have to pay rent. You will save $8k a year by not having to pay rent.

    So you get 8 percent from not paying rent and 4 percent from appreciation. So your total return is 12 percent.

  • An interesting fact, if you keep increasing $10,000 by 10 percent every year compounded monthly then you will have over $1,078,266 after 47 years.

    Wish more people knew about the power of compounding.

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