CAPITAL APPRECIATION
The definition of capital appreciation is “An increase in price or value.” Simply put, real estate historically has gone up in value, i.e. it appreciates in value. As stated earlier if a $100k home appreciates at 5% a year that means in the first year it will be worth $105k. Through the selection of the right property, town, and area, one can begin to see an increase in appreciation above the market trends. Additional activities such as value added enhancements, creative marketing, and other activities; a sophisticated investor can drastically force the appreciation of their property.
The definition of capital appreciation is “An increase in price or value.” Simply put, real estate historically has gone up in value, i.e. it appreciates in value. As stated earlier if a $100k home appreciates at 5% a year that means in the first year it will be worth $105k. Through the selection of the right property, town, and area, one can begin to see an increase in appreciation above the market trends. Additional activities such as value added enhancements, creative marketing, and other activities; a sophisticated investor can drastically force the appreciation of their property.
