Menu
Our TMAP Compounding Calculator gives investors and property owners the opportunity to take a glimpse into their future property value. Note: the average capital growth for major Australian cities is ~7%, this may differ greatly for some regions and areas.
If you’re ready to build your property portfolio, join our next webinar to discuss your equity with our team. If you’re already a member, you can access our lessons on Compounding from the Kajabi app.
What is “Rate of Return”?
Rate of Return, in property investment, measures profit as a percentage of investment cost, influenced by rental income, property value appreciation, and expenses. Firstly, a “good” return varies, often seen as 8-12% depending on location, market, and strategy. Secondly, the “average” return typically ranges from 6-8%, subject to regional market trends. Thirdly, it’s important to consider factors like mortgage rates, maintenance costs, and taxes, as they affect the actual return. As with all investments, property investment involves risks, and returns can fluctuate significantly. Therefore, conducting thorough research and seeking expert advice is recommended.
What is “Doubling Time”?
Doubling Time, aka The Rule of 72, is a way to estimate how long an investment will take to double in value. With some simple mathematics, investors can get a rough estimate of how many years it will take for the initial investment to double in value. Finally, this is an easy way to under compounding – the process whereby an investment generates earnings, and those earnings, in turn, generate more earnings over time.
