Real Estate Appreciation vs. Cash Flow

People are often thinking that it’s a great idea to invest in a home. The main reason is that people see appreciation and immediately think it will increase in value over the years. If you look at the charts it does show that people are buying more than the asking price. But when you look at the inflation rates that go along with that you realize that it’s a very volatile thing to look at.

Key Takeaways:

  • Many people are taught that buying a home is a good investment, even if it isn’t’.
  • Real estate appreciation is when your homes value increases year after year.
  • Appreciation is the main reason on why people think that it’s a good idea to invest in a home.

“Year over year, June 2020 compared June 2021, housing prices in the US were up 17.2%, and perhaps more surprisingly, 50% of homes have sold for more than asking price.”

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