If I were going to try to buy it, I'd figure 3% inflation to the $150K number and only buy if I could get it for about $187K.

As long as we can locate the bottom of the market with some semblence of accuracy, we'll be able to enjoy some inflation-corrected appreciation and lower costs of borrowing at the present time.The point about insurance on homes in Florida is an outstanding one.

I see people out there (some on You Tube) talking about how home prices have historically appreciate only 2% per year including inflation.

According to his analysis, house prices have historically appreciated based on inflation only, expect for the last six or seven years.

Although it's probably more a matter of degrees than opposite opinions.MikeOH wrote: Leverage is the ability to use a small investment to control a large investment and I wrote that leverage only works if the investment is appreciating at a rate higher than the rate of inflation.But if the investment is not outpacing inflation, it is losing value, or at best just keeping up with inflation.

I can't see LTCG higher than ordinary income rates.What has always griped me it that capital gains tax should be indexed for inflation.

For me, real estate is a retirement vehicle, a diversification strategy, and a hedge against inflation.

Even a property that only breaks even, if it is in a good area will usually go up in value yearly, rents will gradually increase due to inflation, and eventually your mortgage will get paid off and your income will climb rapidly.I bought a house 6 or 7 years ago I lost about $50 a month on.

@Jon KlausThe number is a moving target, moving over time, experience, inflation, the economy and age of the investor.When I started the goal was to supplement a retirement long in the future.

With that said, I see both pro's and con's of playing in an inflated NY market versus using my current connections in a smaller (less lucrative?)