Just Like the Rolling Stones Said…Time is On Your Side

Take a look at this graphic that we were given from NBS Highway. It outlines data starting in the 40’s, showing appreciation based on every 10-year period through 2014. It’s interesting to see on the chart how in every 10-year period there has been an increase in value… with 1 exception. We are looking at 82 years of data!

The exception (when there wasn’t an increase in value) is if you bought in 2006. And we’ve talked about that. If you bought that year, everyone was saying the same thing: you’re crazy if you aren’t buying real estate right now. It turns out that it wasn’t the best year ever to buy real estate. Over a 10-year period, national averages resulted in a 3% loss if you bought at that time.

What is It Looking Like Today?

Fast-forward to today, and it’s probably a gain of 70% or more if you bought in 2006 and stayed in the home, depending on where you live. So, people who bought at that time and held onto the homes have seen a great increase in value. It just took longer in that time period compared to other 10-year periods.

But literally, every other 10-year period, we saw significant increases. It’s amazing how it’s mostly double-digits, and even mid- to upper-double digits. In probably 1/3 of the years, it’s triple-digits!

Focusing on the Long-Term Real Estate Strategy

You’ve heard me talk about this plenty of times: 4.5% is the 30-year appreciation average, which means that prices will double (resulting in 100% appreciation) every 15 years. This shows the value of real estate over time.

I know there is a lot of indecision around real estate, especially right now. I also understand that not everyone has 10 years to wait. But it’s clear that real estate is a long-term play. When you do it that way, 81 times out of 82 tries will result in significant appreciation over a 10-year window.

I share this information to re-emphasize the point that it’s essential to focus on the long-term investment. That’s where the real power in buying real estate lies.

If you have questions or want more information, then reach out any time. I’m always here to help and provide personalized recommendations.