Posted to The Age (12/9/2011) on 12/9/2011 at 4:55 AM
Commenting on "Beware of the false profit trap"
http://theage.domain.com.au/home-investor-centre/beware-of-the-false-profit-trap-20110909-1k0ek.html
Many property investment seminars and books provide great bottom line figures after certain number of years. These figures are inaccurate, because these have to be converted to present value mathematically. A million dollars may sound a lot, but that amount in 30 years, if earning at 7% per annum compounding the interest monthly is equivalent to $123,205.85 at present. Many of these investment advisers have no idea about mathematics, and many assumptions made are over-simplistic.
Commenting on "Beware of the false profit trap"
http://theage.domain.com.au/home-investor-centre/beware-of-the-false-profit-trap-20110909-1k0ek.html
Many property investment seminars and books provide great bottom line figures after certain number of years. These figures are inaccurate, because these have to be converted to present value mathematically. A million dollars may sound a lot, but that amount in 30 years, if earning at 7% per annum compounding the interest monthly is equivalent to $123,205.85 at present. Many of these investment advisers have no idea about mathematics, and many assumptions made are over-simplistic.