Value is in the Land (Duh!)
As both a Realtor and a self-confessed number cruncher, I couldn’t resist asking two questions after seeing the headline (above) in USA Today:
One. What kind of annual return does that represent?
To answer that, you (also) need to know that the actress Eve Plumb bought the 850 square foot home (above) — with her parents’ help — for $55,300 in 1969.
Just in case you’re wondering . . . she was 11 years old then.
Two. If the home appreciates at the same rate the next 47 years as it did the previous 47 years, what will it be worth in 2063?
The answers (drum roll, please) . . . 9.5% annually (compounded), and $280 million(!), respectively.
Any takers??
