Appreciation Rate
Your editable assumption for annual property-value change.
Projection assumptions
Why Appreciation Rate matters
Small assumed rates compound into large modeled exit differences. Build the base case from current local evidence and include flat and declining-value scenarios; no market tier guarantees appreciation.
How to check Appreciation Rate before you rely on it
Look at the closed-sale history for similar properties in the same neighborhood over the last decade, including the years values fell, and ask what drove the changes: jobs, supply, and lending conditions, not the national headline. Then build the base case from that evidence and run flat and declining cases beside it. The projection should tell you what you are betting on, not confirm it.
Related terms
- IRR (Internal Rate of Return)
- Annualized return over the full hold period, including cash flow, principal paydown, appreciation, a…
- Rent Growth %
- Editable annual rent-change assumption used in the 10-year projection; it is not a forecast or permi…
Where Appreciation Rate shows up in TrueCap
Projection assumptions feed the 10-year view: rent and expense growth, appreciation, and the exit costs used in the sale scenarios. They do not change the first-year verdict; they change what the deal looks like over time, which is why they are kept editable and labeled separately from the current-year inputs.