Does a house increase in value with time?

Question

I am looking at a home that has 150' on a river. The house is valued at $170,000 but the owner is willing to give it to me cheap. What I want to know is in 10 years if I did nothing but regular upkeep would the house and land automaticaly increase in value due to time and not improvments? and if so, how much do you think?

I do know the guy personally and I don't think he is trying to pull the wool over my eyes but he keeps saying that the value on the house will go up like 2% a year. I thought that was kind of nuts but I think he got that number from when he bought it 20 years ago vs today's value. What he may be forgeting is that he did remodle the home and add alot of extras including a above ground pool, an extra room, and a 50 ft rolling dock. I am looking to buy with the intent of gaining value within 10 years. Thanks for your feed back!

Answer 1

Without improvements no, and since you are within a flood zone you also have to think about the increased cost of flood insurance, there is a reason someone is bailing on a house. The market is not what it was 5 years ago and is going to get worse before it gets better. Yes in the long run housing increases in value question is location and amenities and at what rate

Answer 2

Generally, the property value would go up. Though the market may be in a bit of a slump right now, history shows properties increase in value over time. General maintenance and upkeep is a necessity. In the end, your property is only worth what someone else is willing to pay for it. Be certain to have the property fully inspected by a professional to give you a full view of the possible problems you could be taking over, then weigh the value of your "good deal" for yourself.

Answer 3

With the way real estate and land are selling right now, I guarantee that your house will go up in value in 10 years. Since you have riverfront property, that will add to the value. Make sure you check the house for water damage and mold. With it being so close to water, these are two of the problems you could encounter. Good luck!!

Answer 4

The land will increase in value by 50-150%. The structure on it will decrease in value by no more than 20%.

Answer 5

There are way too much variables to answer that. First, you have to look at the area. Are people buying in that area? Second, look at the land itself. Third, make sure you know why they are selling it cheap. I've read on yahoo that detroit housing is the lowest housing in the U.S. Really, you would be better off hiring a real estate agent to help you out with that, as they would be a whole lot better in assessing market conditions.

Answer 6

It should go up in value, also it depends on the surrounding area, if its developed or going to get developed, basically supply and demand. As far as how much no one will know,

But think back 10 years ago how the housing market was so much cheaper.

Answer 7

Money inflation alone usually brings up the value over time.

I am more concerned about how you know the owner is "giving it to me cheap." Do you know what comparable properties are selling for right now?

There are no guarantees in real estate or any other type of investment. But if I had to choose one I would pick real estate.

Curious about flat fee real estate?
http://www.flatfeerealestateguide.com

Answer 8

Houses can increase in value, but not necessarily. Waterfront property is typically desirable, so this one might.

Unless the seller is a close relative or very close friend, I'd wonder why he's willing to sell it to you cheap - sounds a little suspicious.

Answer 9

exactly what the first person said, but if you are looking to sell, maybe remodel to increase the value....

Answer 10

houses do not but the property it sits on can