The financial benefits of buying a house compared to renting it are always up for debate. However, one element of the equation is often overlooked - the ability to build wealth as a homeowner.

Most experts are predicting that house prices will continue to appreciate over the next few years. The latest House Price Expectations SurveyA survey of more than 100 economists, real estate experts and investment and market strategists expects house prices to rise as follows:

  • 2021: 6%
  • 2022: 4,5%
  • 2023: 4%
  • 2024: 3,6%
  • 2025: 3,5%

Using your annual projections, the graph below shows the increase in equity that a buyer can gain, using a house of $ 350,000 as an example:

potential growth in the equity of a house over the next five years, based only on the growth in the value of the house if you had bought it for $350 Thousand in January 2021

An owner can increase their net worth in more than $80.000 in five years. That's an average of $16,000 per year. That figure should be in any equation that determines the financial benefits of owning a home compared to renting.

If we consider, for example, the purchase of a house in Orlando on a financed basis, we have already discussed that a Brazilian can finance a house in Orlando with approximately 30% of down payment, in this example the down payment would be $105 Mil which would generate a gain of more than 80% on invested capital only in the appreciation of the property.

With the market hot, homes in Orlando are not only appreciating slightly above the national average, but the pressure on inventory means that rents are also being adjusted, making it possible to buy a financed home and pay the mortgage with the rent and have a (small) return on dividends (cash) at the end of the year.

The two factors above together generate a very interesting return forecast for the next five years.

In short, homeowners will make a substantial amount of money from the value of their home over the next five years. If you're ready to buy a house, let's connect so that you too can take advantage of this great benefit.

House Price Expectations Survey: Click Here To Read

Any doubts?

Now that you have understood that the market is very hot and that this can generate gains for those who invest and possible losses for those who are betting on a recession. We can help you understand the behavior of the real estate market so that you can consider investing in vacation homes in Orlando. To make the most of all the tips we've brought you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you to answer any questions you may have about investing in Florida.

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