Since 1991, the average compounded annual growth rate for Vail Valley real estate has been 8%. This may sound modest but considering rental income offsets and a leveraged purchase format, the return on a Vail real estate down payment can be significant.Because high-end destination resorts are in short supply and demographic demand high, we believe that the prior 17-year rate of appreciation is reasonable and can most likely be sustained over the long term. Markets do fluctuate with time and there are likely to be periods over and under this base line rate as illustrated by the following historical data.

Based upon the above-mentioned 17-year historical rate of appreciation (8%), the example Projected Return on Down Payment illustrates a return equal to or greater than the stock market, which has been predicted to be in the 8% - 10% annualized range. However, should the Vail Valley real estate market experience a slowing as a result of the ongoing national downturn, a 5% rate of appreciation should still reimburse the Cost of Ownership expenses.

Please keep in mind that advice on Vail real estate is only as good as the person giving it. Our University of Southern California (USC) undergraduate training in real estate finance and MBA focus on urban economics doesn't necessarily make us experts, but in conjunction with our 30 years of industry experience and our many years in the Vail Valley, we do feel qualified to interpret the presented data and to discuss how different rates of appreciation affect Return on Down Payment calculations, especially the influences of real estate here in Vail.