If you live in Reno and own a home, you have made one of smartest investments you can make. Typically homes in Reno have gone up in value about 5% a year, over the last 3 years prices have doubled and we are now in a correction, which is normal. Let’s take an example, if you would have invested $20,000 in a home worth $200,000 at a 5% annual appreciation. That $200,000 home would appreciate $10,000 in value the first year, earning $10,000 on an investment of $20,000 is a whopping 50% return. In contrast, if you put $20,000 in the stock market getting a 5% gain would yield only a $1000 profit.
Looking at it another way over a longer period of time, if you put $10,000 into the stock market in 1996, the average annual return would make that investment worth $21,500 today, an increase of $11,500. The median home price in 1996 was $140,000, today, that same home would have gained nearly $100,000 in value.
Reno Real estate is typically a more stable investment than its volatile counterparts. Keep this market in perspective and remember this is a great time to buy. If you are a first time home owner this is an exciting time for you to get into your first piece of real estate, call me today and let’s get started.
David Hughes
