Positive Appreciation In Kansas And Missouri

Kansas City real estate

 

 

 

 

 

 

 

 

 

Sorry California.  Too bad, Florida.  Nevada, close your eyes.  Last Thursday the government’s index for housing stated that Kansas had appreciation in the first quarter of 2008 was 2.7%.  Missouri was 1.7%.  And the Kansas City area housing prices were up “a little less than 1 percent in the first quarter.”  (This is as compared to the first quarter of 2007.)

I’ve said it here over and over and over again.  Some people are still not getting the message.  Kansas City real estate investment property is a safe haven.  Not full proof.  Not perfect.  In great years we might get 7%-10% growth.  But in bad years we may only decline slightly or still manage to pull out very modest gains. 

Think about that.  Forty-three states lost value.  Kansas and Missouri housing chose not to participate.  What’s the old saying:  “Slow and steady wins the race.”

 

2 Comments

Filed under Kansas City, Kansas City Real Estate, Real Estate Investing

2 responses to “Positive Appreciation In Kansas And Missouri

  1. Slow and steady is just the beginning. Add to the mix the investor’s ability to use prudent leverage attached to reliable fixed rate financing, and you’ve created your own custom perfect storm.

    What folks sometimes can’t see, is the reality that appreciation is less important than capital growth. It’s absolutely possible, (happens all the time now) to experience a significantly lower appreciation rate, but have more money at the end of the holding period.

    Most real estate investors don’t realize this. Appreciation is only one factor on a long list, and tends to be overrated by many.

  2. You got it. Capital growth is easier when you have positive appreciation. However, and people may choose not to believe this, you can have negative appreciation AND capital growth.

    Of course you know this. But did everyone?

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