Have you always thought about buying investment property, but you’re not sure where to start, how to start, or what you need to know to really get going? And who would do that in this market anyway? Let’s unpack some of the numbers and historical numbers and kind of take a look at why now might actually not be a bad time to get into real estate investing.
If you look at the average appreciation over the last couple of years, and these are big national numbers, so they’re gonna be dependent upon where you are, and the neighborhood and the area and the county and the city and all that good stuff. But the overall numbers are 20% appreciation on home values over the last two years. Those are pretty wild and crazy numbers, because where are you getting a 20% return on an investment that is relatively safe, like it’s not likely to drop by, you know, 100 points tomorrow. Now, those numbers are unlikely to continue. So while 20% is great, that also implies that prices are going to go up by that much, right? Nobody really wants that. But over the last 10 years, we’ve seen increases in value of about 10%, prior to the last couple of years. So that is still a pretty solid return on your investment over time. When we look at the average return on standard traditional investment stocks and 401k’s and things like that, as being between 5% and 8%, take into account the fact that income has only increased year over year by four to 5%. And hedging against inflation.
Figuring out how to make your money make more money for you, real estate investing is a really solid way to go. You could check my other video that has some more information about different business models on real estate investing, whether you are looking to have immediate cash flow, whether you just want to balance it and bank on the appreciation, house hack, or any other type of real estate investing. But overall, the appreciation and the ROI that you get from real estate is a really solid investment and something that is a great way to pay for your kids college. If you buy a house when they’re young, sell it when they go to school often you can pay for their whole college experience just by the appreciation alone.
So if you’ve ever thought about investing in real estate, it is not a bad time even though rates are a little high. And your return on your investment can be really fantastic depending on what you buy. So if you want more information and you’re curious about getting started, you want to see what it takes. Give me a call or send me an email let’s schedule a time to chat and discuss your long-term plans, and short-term plans, and see if jumping into the real estate market as an investment is the right time for you.