Is it true that real estate always appreciates? I can't imagine a world so perfect. But somehow, all the YouTubers I follow for real estate stuff live by the fact that it does. Share an instance with me when the opposite happened. How did you bring yourself out of that hole?

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Re: 2008.

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Read about the 2008 housing crash

The healthier mindset is to think that real estate usually appreciates over long periods, but it can absolutely drop for years. The safety comes from buying conservatively (payment you can afford even if life punches you), having a cash cushion, and thinking in decades

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No… housing bubble 2006-2008 & 2020-2022…

My parents bought our house in 1995, by 2007 it had appreciated to ~$1.2M, driven mostly by Toll Brothers entering my community and building houses that started at $899K… our house was similar in size but on a much larger lot…

My parents decided to leverage the house to buy a property in PA around 2002… that we used as a summer house… which was valued at $800K in 2007…

Long and short of it… they consolidated the loans and took cash out in 2005… when my dad lost his job… and the terms of the loan were pay what you want for 3 years… then the balloon payment came… foreclosure on all properties… parents divorced… and my college fund disappeared…

So no… real estate does not always appreciate… there are peaks and valleys… but overall the market, historically, has been known for stable growth long term…

But even in 2020-2022, we saw housing prices appreciate by 50%-100% in some markets… my uncles house in Florida appreciated by 60% during this period, only to fall 30% now… still in the money, but normalized and housing is soft in that area right now…

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Short term has more risk; long term it does unless something drastic happens

It really depends on where you live. Here in south Orange County in California, it always goes up. It dropped whooping 10% in 2008.

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