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Housing Crash Coming Soon? INFLATION (Part 5)
1. DEFINITIONS...
What is Inflation? A general increase in prices and fall in the purchasing value of money.
What is appreciation? Increase in monetary value.
Appreciation is when the 'intrinsic value' of something, like a house increases. This is not the same as 'price' or 'cost', we are talking about VALUE, as in, something grows more valuable.
How does something actually gain VALUE or Appreciate?
-increased demand, not enough supply
-additional value is discovered on your property; oil for example, or developed road frontage, or adding utilities where there weren't any before.
-Amazon…
The skinny
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