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There have been so many discussions on the value of real estate as a home and an investment. Generally people that argue against real estate try to say that it only appreciates at the same rate of inflation and that it is tied to some fundamentals. I know the long term and short term compounded rate of appreciation in the areas I invest. Over thirty years the difference between an appreciation rate of 4% vs. 11% on a $100,000 property is $1,964,890. If you don't live in a higher appreciation area it would seem that purchasing in an area of higher appreciation would pay for alot of management fees and travel to a property in one of those areas.
My appreciation rates have been:
1978 condo purchase in Diamond Head Hawaii 9%
1986 SFH purchase in SFBay area 10%
1994 SFH purchase in Vegas, baby, 8%
2003 condo purchase in Diamond Head Hawaii 20%
2004 condo purchase in Waikiki Hawaii 15%
I think those rates will remain if not increase over the near future because of increased demand.
I also looked at my mothers old house in Cincinnati Ohio that was purchased in 1967 and it has appreciated 5.1% over 40 years.
What's your appreciation rate? City, Suburb, or rural? Single family, condo or other? What city or region.
Last edited by honobob; 02-12-2008 at 07:52 PM.
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