Today I was speaking with a guy from my neighborhood and he was telling me about when he purchased alot of buildings 10 or 15 years ago or more. He used to buy them at 25 or 30k and a few years later sell them for 80 or 100k. Then there was the one that got away, a building offered at 90k and at the time the numbers did not work. Think of that?!!? Even in todays market , the kind of buildings he was buying would cost at least 250k, maybe 300 or more. Ive heard stories like this numerous times, and Ive seen some of the sales prices in doing my research for clients, seeing property prices go from under 50k to 250 and up in the past 20 years. Even as far back as the 70's, there were single family homes being sold for 25,000. Ive heard people doing that in california, in florida, all over. I have to ask myself though, how can that continue? Inflation cant be that much over the next 20 years. Are buildings I will buy for 250 or 300, be worth 500k 20 years from now? Is there a cap to what the prices could be? In some of these states where home prices or multi family prices are 1 million or more, at one time were those properties being bought for 50k? Id love to hear some of your experiences...and guesses on the future of appreciation and if there will be a realistic limit to where "average prices" go?
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