Sometimes, you make a lot of money, like in 2016, when you would have made $52.4k.

In other years, you lost money. In 2022, you would have lost almost $45k as house prices fell.

Overall, the gains outweigh the losses. But it’s a bumpy path to get the gains.

There are three lessons you can take from this analysis

#1 You don’t make money every year

In the first year, your house went up in value by $19k. But you had to top up the property $3k. So you’re $16,000 better off.

The next year (2014), house prices increased slightly faster.

You made $28k from the house going up in value. However, you had to top up the property by $3k again.

So you were better off by $25k that year.

But the next year wasn’t so good.

Your house dropped in value by $1,000, and you had to top up the property by a bit more.

You lost $4,460.

And those bumps continue.

In the best year, you made $176k when house prices spied after the Covid-19 lockdowns.

Then, you lost $44.8k the next year as house prices fell.

So, if you invest in property, you need to be ready for the ups and downs.

#2 House price growth makes more money than cashflow

99% of the returns from this property were the house going up in value.

Only 1% of the net returns came from the rental income.

Deep down, most investors know that the bulk of the returns come from house price growth. These numbers show this is true.