Rising Prices Help You Build Your Family’s Wealth
Okay, so home ownership isn’t crazy, but the wealth that Fort Collins homeowners are building is pretty wild! I mean, I remember when I could buy a condo in the city of Boulder for $20,000. Um. Hey, Eighteen year-old me! Go buy a condo or ten.
And aside from the bubble, real estate in Northern Colorado has just climbed and climbed like Mount Everest. Up we go.
Let’s look at some real numbers though. This stuff is really crazy.
Over the next five years, home prices are expected to appreciate, on average, by 3.6% per year and to grow by 18.2% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.
So, what does this mean for homeowners and their equity position?
As an example, let’s assume a young couple purchased and closed on a $250,000 home this January. If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?
Since the experts predict that home prices will increase by 5.0% in 2018, the young homeowners will have gained $12,500 in equity in just one year.
Over a five-year period, their equity will increase by over $48,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.
Bottom Line
Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!
Don’t do what I did and let your ‘younger self’ miss out on this appreciation opportunity. Just think of how painful it will be if these numbers come true and you’re still paying rent. Oh, and by the way, your landlord just raised the rent for the 4th time in five years.
Let’s get you off that crazy rent treadmill. And into the real estate appreciation ski lift.
Ready to chase that dream? I love to chase dreams. And catch them!
I literally wake up in the middle of the night with marketing ideas for my listings. Using modern marketing tactics, I pride myself on setting the gold standard for Real Estate marketing.
Nearly 50% of the properties that I marketed last year went under-contract opening weekend. Trust me. My clients were delighted.
Personally, I love to dance (tango, west coast swing, lindy hop), surf (well, I try to), and laugh (every chance I get)!
Joyfully,
Ann
