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Real Estate
Eileen M. Day realtor . ss.ss
UP, UP AND AWAY
If you think that the continuing rise in real estate values is a recent phenomenon, think again. Since 1850, the fair market value of real estate, land and improvements has been increasing at a compounded rate of about five percent. To illustrate this point more vivdly, if Abe Lincoln’s cousin bought some property in 1850 for $1,000, that same property would be worth one million dollars today.
In current times, real estate has appreciated in forty-eight of the last fifty years.
Appreciation is even more dramatic when you realize it is tied to leverage in real estate. That means when you buy property, you usually use other people’s money to do so. If you put 20 percent down ($20,000) on a $100,000 home it appreciates at 5 percent, the increase in one year is $5,000. This actually represents an increase of 25 percent on the cash invested.
As these returns are compounded over the years of ownership, the significant financial rewards of home ownership are apparent.
If there is anything we can do to help you in the field of real estate, please drop in at EILEEN M. DAY, Realtor, The Clopton House, Washington, Va. 22747. Phone: 6753400. We’re here to help.
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