Appreciation Rate
Asset value growth over holding periods.
Appreciation Rate
Appreciation Rate is the rate at which the market value of your property increases over time.
Formula
Appreciation Rate = [ (Current Value - Original Value) / Original Value ] * 100
What this tells you
Appreciation tells you the rate at which your equity is growing due to market inflation, physical asset improvements, or neighborhood growth.
How to improve it
- Value-Add Rehabilitation: Renovation of kitchens, bathrooms, or exteriors to force value appreciation.
- Select Growth Markets: Invest in submarkets with increasing populations, job growth, and infrastructure development.