Written January 2017
With a New Year ahead, a slower market than 2016 and a depreciating currency, many of our clients ask us:
What can money buy these days?
To truly understand the buying power of $2m today and the time value of money, we first reviewed what $2m bought in past years. In our realistic analysis, we took into consideration, location and condition of these listings, our fluctuating inflation rate and stayed within a range of $1.8m to $2m.
The upward trend in property prices over the last 10 years is obvious. What’s not obvious is what you purchase dollar for dollar; year on year the land and livable space decreases as pricing increases. Consequently, the price ceiling for a middle-income family dwelling has risen by approximately 40% in the last decade, despite a current inflation rate below 5%.