Well the California Association of Realtors just came out with their forecast for housing prices next year and they are projecting a 4.4% increase in prices. I know a lot of investors ask me how much a place will rent for and then deduct the monthly HOA fees and annual taxes to come up with the rate of return they will get.
I think most real estate investments make more money in the long term on the price appreciation more than they do off the cash flow. Often as you build up more equity in the property you can tap into that equity by refinancing and pulling out money to buy another property. This is a time proven strategy as many of you know.
Just wanted to share a third party forecast for next years appreciation rate with you. Its been my experience in looking back on their forecast that they often produce conservative forecast. In 2019, they forecast a 2.5% appreciation rate and now in early December 2020 it looks like the actual appreciation rate is going to be 11.6%. They are usually not that far off.