1. What is Property Price Increase?

The Property Price Increase measures how much a property's value has grown over time, expressed as a percentage of its original value. This calculation helps investors, homeowners, and real estate professionals understand market trends and investment performance.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Price} \) — Current property value
• \( \text{Old Price} \) — Original purchase price or previous value

Explanation: The formula calculates the relative change in value compared to the original price, showing growth as a percentage.

3. Importance of Price Increase Calculation

Details: Tracking property value changes helps in making informed decisions about selling, refinancing, or assessing investment returns. It's also useful for tax purposes and portfolio valuation.

4. Using the Calculator

Tips: Enter both prices in the same currency without commas. The old price should be the original purchase price or previous valuation, while the new price is the current value.

5. Frequently Asked Questions (FAQ)

Q1: How often should I calculate property price increase?
A: For investments, calculate annually. For personal property, every 2-3 years or when considering major financial decisions.

Q2: Does this account for inflation?
A: No, this shows nominal increase. For real increase, adjust prices for inflation before calculation.

Q3: What's considered a good annual increase?
A: Varies by market, but 3-5% is typical in stable markets. High-growth areas may see 7-10%.

Q4: Should I include renovation costs in old price?
A: Only if calculating return on investment. For pure market growth, use original purchase price.

Q5: How does this differ from ROI calculation?
A: ROI includes all costs (purchase, improvements, taxes) while price increase only compares values.