🏠 SFH 5 🛌 * 3.5 🛀 2002: Sold: $363k 2024: Listed : $824k Even after a crazy 2020-2022 housing market, the growth is 3.8% /yr, It’s barely above inflation. Does not include maintenance, insurance, up keeping etc.
@MindspeaksFi Wow, great example. These numbers surprise me too (I had to double check them on a calculator in fact!) This makes me feel better about considering an $800k+ house someday, since I remember back in 2002 considering houses in the $300s to be affordable 😄
@MindspeaksFi Realestate only works if lots of leverage is applied or if you need a tax shelter I’m not the biggest fan Leverage cuts both ways & tax rules can always change
@MindspeaksFi I agree for many locations. All depends on the market though. We bought our house in 2013 for $205,000. Now worth $380,000-400,000 11 years later. So averages to 5.75% to 6.25%. Less of an investment to me than a hedge against housing costs. Rent has grown even faster here.
@MindspeaksFi This example shows that investing in single family homes is not easy money. If the house rents for 40k or 5% per year less 1% for taxes and 1% for all other expenses gives you a 3% return plus an average 3.8% appreciation or a total return of 6.8% per year compared a 7%mortgage