February 10th, 2012 10:35 PM by Christopher Terry
28.5%, that's the total average decline of single family home prices in the Greater Fall River real estate market for the last 5 years. Sounds bad, right? But if you look back another 5 years, from 2001 to 2006, the Greater Fall River area real estate market for single family homes saw an average total property value increase of 70.75%.
What does that mean in dollars and cents? If you purchased a home in 2001 $175,000 by the end of 2006 the value would have jumped to over $297,000, then by the end of 2011 the value would have fallen back to around $212,000. That is a 22% total return over ten years. Not bad. And this does not take into account any tax benefits of homeownership or the fact that you would have had to pay to live somewhere! In other words, as a homeowner you are paying yourself rent and with each rent payment you own that much more of your home.
Now consider that you received an average return of 22% over the last 10 years on 100% of an asset that, for most of us, only required 3 -5 % of our own money! Take our example above: 5% of $175K is $8750. In this example the total return was $37,000 or over a 400% return on the initial investment!
Bare with me, I'm going somewhere with this.
Now imagine you purchased a multifamily investment property. And imagine that the rent received pays some or most of your mortgage costs. Now calculate your return on investment and you will see why homeownership is still and will always be the greatest path to wealth in our country. If you are thinking about taking advantage of these reduced prices and incredibly low interest rates our goal is not just to help you find the right property for you and your family but to help you unlock a world of real estate wealth! Watch the story of Joel and Danny at www.ezhomesearch.net/save.
Average Single Family Prices in Greater Fall River Ma over the last 10 years:
P.S. 2010 to 2011 only saw a .25% price decrease. Is the worst over? Are we at the bottom? Only time will tell.