Now before you say “Not wealth creation again,” hear me out. What if I told you that I am saying it for a very good reason, which is; that you have the power within you to create wealth through property and if you are not doing this already, you are missing out BIG TIME!
So what am I talking about? It is the very simple and unbelievably effective tool of compounding interest. Hear me out.
Albert Einstein, when asked what the most powerful force on Earth was, answered, “compound interest.” He also called it the “8th wonder of the world.” Ben Franklin called compound interest the “stone that will turn lead into gold.”
So what am I talking about?
If you were given a choice to receive one million dollars in one month or one cent that doubled every day for 30 days, which one would you choose?
Most people will say I will take the one million dollars. The reality is that the one cent that doubles everyday will give you $5,368,709.12 in thirty days.
Surprised? Well that is the power of compound interest and if you looked at the figures it will be like this:
Day 1: $.01
Day 2: $.02
Day 3: $.04
Day 4: $.08
Day 5: $.16
Day 6: $.32
Day 7: $.64
Day 8: $1.28
Day 9: $2.56
Day 10: $5.12
Day 11: $10.24
Day 12: $20.48
Day 13: $40.96
Day 14: $81.92
Day 15: $163.84
Day 16: $327.68
Day 17: $655.36
Day 18: $1,310.72
Day 19: $2,621.44
Day 20: $5,242.88
Day 21: $10,485.76
Day 22: $20,971.52
Day 23: $41,943.04
Day 24: $83,886.08
Day 25: $167,772.16
Day 26: $335,544.32
Day 27: $671,088.64
Day 28: $1,342,177.28
Day 29: $2,684,354.56
Day 30: $5,368,709.12
As you can see the major growth is in the fourth quarter. So what is that saying to you? What it says to me is that if you buy and hold property today with the benefit of compound interest it will double in seven to ten years.
In the early seventies I was selling house and land in the City of Knox for around $15,000. Today those same houses are worth over $600,000.
So consider this! Would you pay off your mortgage early when you can get a much better return by investing the money.
In other words, you can earn more by investing than you would save by paying off your mortgage early.
Which leads me to point out that instead of buying a property for cash, you are better off borrowing and buying more than one.
I hope that I got you thinking. And if I have got you thinking, I feel that I have been of real value to you, because it is my mission to help and assist people to create wealth through property.
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If you want to have a no-obligation chat about this and more, please feel free to email me on Bertram@itsabreeze.com.au with a subject heading of “Lets chat’ and we can set up a time to have our chat.
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“90 per cent of all millionaires become so through owning real estate… The wise young man or wage earner of today invests his money in real estate.” – Andrew Carnegie (billionaire industrialist)
