Jim Keaty, of Keaty Real Estate, recently released a video discussing the Louisiana and Lafayette housing market appreciation rates over the last 20 years. The video highlights the government’s tracking of sales data, refinances, and appraisals submitted for FHA appraisals. Keaty’s breakdown of the data shows appreciation or depreciation during each year from 2002 to 2022. While some years experienced depreciation, the overall appreciation rate from 2002 to 2022 was 100.1%.
This means that if you purchased a $200,000 house in 2002 and sold it in 2022, you could sell it for approximately $400,000, resulting in a $200,000 gain in equity. Keaty emphasizes the power of creating generational wealth through owning real estate and leveraging a mortgage or downpayment to purchase a larger house.
If you put 5% down on a $200,000 house in 2002, you would have invested only $10,000. But over the years, as the house’s value increased, so would your equity in the property. By the time you sell it, the equity gain could be substantial. Therefore, the real estate market can be a significant avenue for building generational wealth.
Owning property can seem like a daunting task, but as Keaty shows, the potential benefits of homeownership far outweigh the risks. With the proper guidance and knowledge of the real estate market, homeownership can be a viable and profitable option for building wealth.
16/03/2023 7:45