Rule of 72 – Proof in the Putting

3 03 2011

I’ve babbled on a couple of times at least, that for the most part, Real Estate in Billings is a good solid investment & that the price of homes roughly double ever ten years of so – Hence the Rule of 72 comment.

The Rule of 72 is a financial term used to determine the amount interest & time it takes for your money to double.  If you look at a 10 year period, it’s about 7.2% interest.  Pretty darn, impressive, if I do say so myself. (my inner math geek is coming out to play)

Just wanted to share this tidbit with you, so you know I’m being truthful.

In 1994, the Billings MLS showed an average sale price of $80,443.  About 10 years later, in 2005, the average sale price in the Billings MLS showed as $161,942.  How do ya like them apples?

I say celebrate that we live in Billings.  And if you don’t, you might want to look at your areas MLS data & if it’s not as good, consider “getting you some” here.




One response

17 04 2011
The IDEAL Formula for assessing Investment Property « Kate Hamlin's Real Estate Blog

[…] Appreciation – The market is not always stable, but generally speaking, Real Estate appreciates.  See The Rule of 72 blog post here…. […]

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