One of the biggest reasons why anyone would want to buy a house instead of just renting it is that they would ideally want to sell the house at a later date at a price that would be extremely profitable for them in a wide range of ways. In spite of the fact that this is the case, you can’t just rely on anecdotal evidence while you are making investments with the money that took you several years to end up saving up. Instead, you need to look into the actual data, and an essential piece of data for you to parse would be the kind of appreciation that your house would see as the years go by.

Appreciation in this sense is referring to the amount of value increase that your house would get, and according to the folks at Mary Cheatham King as well as third party analysts, suffice it to say that your house would increase by about 3.5% in value every single year. It is important to note that this compounds over time, which means that in five years your house’s value will have increased by over 18%.

At the end of the day, different housing markets will have their own rates of appreciation. Some of them see house prices rising much faster whereas others tend to be a lot more conservative. Regardless, if you look at the national average, an appreciation of about 18% over five years does not seem all that unlikely. That means that your house which you bought for $300,000 will end up being worth well over $350,000 in just five years and that is truly amazing!