The last decade has seen some of the most volatile real estate profits and losses that most people will see in their lifetimes. The sad thing is what this has 
done to the average consumer’s perception of appreciation. If you have one year (as we did) with 47% increase in values – then the historical range of 2-5% appreciation looks pretty pathetic. But does it really when we look at a â€real life†scenario?
Take an average first time homebuyer who purchases a $175,000 home with 3% down at a 4% interest rate with 4% appreciation per year ( a very realistic number in the valley). In five years, that borrower has a net equity of almost $50,000. To see this example click here.
Still wondering why to buy vs. rent? The answer is all in the numbers!