Listen "Homes with Benefits the Home Appreciation Story!"
Episode Synopsis
Mostly you hear about all the appreciation in a home. So there is basically one type of appreciation because it's in price at home. But there are two types of people. So if you Let's go with if you already have a home, Rick, and what does appreciation mean to somebody who already has a home?Well, appreciation is how you build what we call equity. Right. And it's also how you build wealth when you hear people say, and I'm not, I'm not saying this is 100% true, or it's not the only way to build wealth, but one of the ways to build wealth is down real estate. In fact, if you think about it, let's look at the appreciation last year 2021. In Indiana, our appreciation rate was 19%. Now, that doesn't mean every house increased by 19%. Some increased more, some increased less. But that was the average appreciation rate. So let's take that average appreciation rate. Let's say somebody has a home, and it's a $200,000 house. Now a couple of things don’t matter whether you have a mortgage or not appreciation is not affected by whether you owe anything on the home or how much you owe on the home. It just, it just happens because it sits there and it gains value. So if you have a $200,000 home, it appreciated at 19% for a year, that's a $38,000 increase in your net worth. So your house went from 200,000 to $238,000 in value if you did the average increase of 19%. Now you didn't have to do anything.You had to live in your house. Yeah.Do anything you don't normally do. Right? There's not Yeah, nothing Correct. You're just that just increased your net worth. If that continued to happen. It's incredible what it would actually do for your wealth. And I did this on a $400,000 house because I thought it would be interesting, I use the 5% appreciation because I think 5% was what we averaged over time. Yes.On regular months and regular years, and we'll get into more of this in a little bit, it's about an average of Connect with Us:For more episodes of Indy's Real Estate Gurus, visit IndysRealEstateGurus.com. Join our community for more insightful real estate discussions, tips, and expert advice. Don’t forget to subscribe to stay updated on the latest episodes! Follow Us on Social Media: Facebook: Indy's Real Estate Gurus Twitter: @IndysREgurus Instagram: @indysrealestategurus Contact Us:Have questions or want to get in touch? Email us at [email protected] or call or text us at 463-223-9592. We love hearing from our listeners! Support the Show:If you enjoy the podcast, please leave us a review on your favorite streaming platform. Your support helps us grow and reach more real estate enthusiasts like you!