The 5-Year Rule: The Secret to Building Wealth Through Real Estate

One of the biggest mistakes I see buyers and sellers make is overlooking what I call the 5-Year Rule. Between closing costs, commissions, and time to build equity, you need about five years to come out ahead.

Homes appreciate 3–5% a year. On a $500,000 house, that’s $25,000–$40,000 of equity by year five. That’s your profit, your wealth, your next move.

Exceptions exist, like relocation or emergencies, but unless that’s you, think long-term.

I’m Kelly Day with simpliHŌM — where we make buying and selling a home simple.