Homeownership as an Investment: The Role of Price Appreciation

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1We 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:

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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:

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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.

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Call Christina Stramiello at Lifestyle by Design today for your free real estate consultation. No strings, no pressure, just great information.

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By Christina Stramiello, PA
Creator of:

Lifestyle by Design Real Esate

         813.334.1145

Broker: Robert Slack Fine Homes, LLC
3320 SW 33rd Rd, #100
Ocala, FL 34474

About Christina Stramiello

 

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