Category: Finance, Real Estate.
We all want high return investments, but what is the best way to achieve substantial long- term capital growth?
The Secret of High Return Investments. Let s look at the best investment, combined with the most powerful force in investing, and how they can create a high return investment that grows rapidly. Albert Einstein called this: "The most powerful force in the universe" and investment terms he s right. Which is the Best High Return Investment? Compound interest on an investment with low downside volatility is really the secret of getting high return investments to make huge gains over the long term. When looking at high return investments the best combination is an above average return, linked to low volatility, combined with compound growth. The overall price of farmland has increased by 30% in the last 12 months, and by 130% since the early 1990s, with an average 920% growth in the last 20 years.
As an investment, UK land has provided better capital growth over time than most hedge funds, investment trusts, mutual funds, equities, and with a, or shares lower downside risk. The 920% over 20 years is average growth, and many investors have achieved far greater gains by careful plot selection. UK land provides above average solid growth for the following reasons: Population Growth- The population of the UK in 1981 was 52 million. Why UK Land is Providing Stunning Returns with Low Risk. In 2001, the population had increased by about 6 million to 58 million inhabitants. This constitutes over 60% of the annual population growth.
Immigration- In terms of immigration, there is the granting of entry to the UK, 000 people per, of over 170 year. Therefore, at current rates of growth the UK can expect to see at least an additional 4 million inhabitants within the next 20 years. Furthermore, more people are staying single by choice, and getting married later in life. Social Trends- There is a rising divorce rate in the UK. In the next 17 years, with the rising population and increased lack of affordable housing, the UK will need another 5 million homes. We can see already that land has had fantastic growth year on year, and looks set to continue.
Compounding a Small Sum to a Million! The average gain was 30% , in 2004 alone. A steady compound growth soon adds up! Lets take an example now of compound growth in action: $50, 000 invested with a compound grow of 30% annually would take just 12 years to be worth over$ 1, 250, 000! Of course, bear in mind that the above illustration is subject to the fact that investors may use bigger or smaller deposits, and there is no guarantee of 30% annual growth. Compound interest makes you money work harder, and as the amount increases, it soon adds up. To make big gains, the formula for investment success over the long term is: A High return investment+ low downside volatility+ the power of compound interest= big capital growth potential.
For High Return Investments Look no Further than Land! Many hedge funds, unit or investment trusts, can be negative for years on money invested, or even never recover at all! Land tends to rise steadily in value year on year and with low downside volatility giving steady solid growth. When considering long- term investments, land with its good growth potential and low downside volatility, makes it the ideal investment to benefit from compound growth
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Another Thing To Watch Out For Is The Escrow Service That The Bank Uses - Elinor Galliher's Finance and Real Estate blog:When a bank forecloses, they take ownership of the property, usually in order to resell it in hopes of earning back some of their money. Bad for the home owner, since you can, good for you often get bank- owned foreclosure real estate for a song.