Part of rental investing is property appreciation. You don't want to count on appreciation too heavily but you can certainly benefit from it. Generally I expect real estate to appreciate roughly 3% annually long term. Of course that varies a lot from location to location and region to region but overall I think 3% is a decent baseline. As it turns out our rentals have appreciated about 3% total thus far.
I pulled price values off of Zillow and also referred to the site to get our original purchase dates and years. Using that I figured our current growth rate on the properties values:
Here's the table :
| paid | Zestimate | CAGR | |
| 2002 | $45,000 | $127,000 | 8.3% |
| 2006 | $95,000 | $151,000 | 5.3% |
| 1999 | $141,500 | $219,700 | 2.8% |
| 2002 | $134,000 | $209,000 | 3.5% |
| 2003 | $166,000 | $137,000 | -1.6% |
4 of our properties are up in value and one has lost value. The cheaper two properties are up significantly more. The other two properties are up 2-3% range.
If I sum up the total amount paid versus the total current value and then use 2002 as a rough average purchase date then the growth comes out to 2.9% for the lot.
--
Posts
