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Homeownership as an Investment: The Role of Price Appreciation

Wednesday, May 27, 2015   /   by Matthew Freda

Homeownership as an Investment: The Role of Price Appreciation

 
Investment

Homeownership as an Investment: The Role of Price Appreciation

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 Appreciation | Simplifying The Market

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 | Simplifying The Market

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.

simplify

This is a test.

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Matthew
Freda
 
 
Freda Realty, Inc.
Longwood, FL
(407) 513-4724
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eXp Realty, LLC
Matthew Freda
651 W Warren Ave
Longwood, FL
407-513-4724

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