You now have a net worth approaching a MILLION DOLLARS! Since its inception, the New York Stock Exchange has averaged an increase of 11% per [...] Taxes take their toll.Another aspect to consider is inflation. a marketing company that sells simple software under the brand name of Simple Joe. All in only 10 years. (Home Value * ((1 + Appreciation Rate) to the Years power) or 150,000 * (1.05^10)). The same holds true for your home appreciation rate.But the possibility remains. Absolutely NOT! So if you purchased your home for $150,000 in 10 years at just 5% annual appreciation, your home will be valued at $244,000. Invest Your Home in the Stock Market But is it possible? But this is still greater than your mortgage interest rate and certainly greater than your bank account, CD and most money market rates. It appreciates over the years, right? One way to look at your investment rate of return is to subtract estimated inflation and then reduce the rate by 20% for taxes. Oh yeah!Meanwhile what is happening with your home? (Author’s Note:  Although the stock market returns illustrated in this article are an obvious example of Greenspan’s “irrational exuberance” of 1997-2000, the concept is still valid. Also, remember that the interest you are paying on your home mortgage and home equity mortgage is partially tax deductible. Absolutely YES!
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