Apply

Homeownership as an Investment: The Role of Price Appreciation

Posted by GoGSF | November 28, 2016 | home appreciation over time

 

holiday-house-177401_1920.jpg

 
We recently posted on the results from the latest Home Price Expectation Survey (HPES) showing where residential home prices are headed over the next five years. Today, we want to show you what the results of the report could mean to you. A good portion of every family’s wealth comes from the equity in the home they live in. As the value of their home (an asset) increases so does their equity. Let’s look at a possible case scenario based on the latest HPES. Here is a chart showing the survey’s projections on annual appreciation over the next five years:
 
Projected Mean Percentage Appreciation | Keeping Current Matters
 
 
We then looked at the five-year impact this would have on the equity of a family that purchased a home in January for $250,000:
 
 
Home Price Appreciation | Keeping Current Matters
 
 
 
Their family wealth (based on increased equity) would increase by $47,772 over those five years.
 
 
Bottom Line: If you don’t yet own, perhaps you should be thinking about purchasing. If you already own, maybe it’s time to move up to enjoy your dream home and also ride the increase in equity of the larger asset.
By The KCM Crew

Popular Posts

Recent Posts

Ready to Apply?

Complete Your Full Application