The problem with this approach is that if their investment performs below average for a few years, they get frustrated and in most cases, they'll be extremely disappointed.

A more rational and sensible view when looking at proposed property growth is to seriously consider the worst scenario as well as the desired result. However, property can perform in such a way that the worst scenario is often a pleasant surprise.

It has already been established that property values have increased by an average of 9.8% per annum since 1948 and it is often the supposition, with good foundation that this healthy appreciation will prevail on into the future. If we halved this figure to 4.5% purely as an exercise, then one might assume that the returns would be unacceptable. The table below, however, shows a comforting result to the Investor who might take a more cautionary view of growth.

Based upon a £160,000 property, putting down a £40,000 deposit and taking a 75% mortgage...this is how it looks

So you can see that even achieving a 4.5% level of growth, less than half of the rate for the last 60 years, your initial investment of £40,000 has created a return of very nearly £150,000…! This also illustrates the benefits of viewing property investment as always being a long term commitment.