Question.
I have completed 'the six returns' on my own properties and I cant seem to work out how capital growth is calculated. Growth on Equity Return (GOER). Do we just make up a desired annual growth and calculate it from there or is a system implemented to work out annual growth? Not sure if I missed something..
Thanks in Advance.
I might have missed something too, but my understanding of calculating expected capital growth is that you base it on previous capital growth - in other words, it is a guesstimate, based on historical data.
For decades, I think the average K growth was 7% per year, but that could involve dead flat for as long as ten years, then a sudden surge over a few years. In the current world economic conditions, many seem to think we are entering uncharted territory.