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Property Price Increase Calculator Percentage

Price Increase Formula:

\[ \text{Percentage Increase} = \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \times 100 \]

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1. What is Property Price Increase Percentage?

The Property Price Increase Percentage measures how much a property's value has grown over time, expressed as a percentage of its original price. This metric is essential for investors, homeowners, and real estate professionals to track appreciation.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

\[ \text{Percentage Increase} = \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \times 100 \]

Where:

Explanation: The formula calculates the difference between the new and old prices, then shows what percentage this difference is of the original price.

3. Importance of Price Increase Calculation

Details: Calculating price increase percentage helps in evaluating investment performance, comparing property appreciation across markets, and making informed buying/selling decisions.

4. Using the Calculator

Tips: Enter the original price and current price in dollars. Both values must be positive numbers. The calculator will show the percentage increase (or decrease if negative).

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good price increase percentage?
A: This varies by market, but typically 3-5% annual increase is considered healthy in stable markets. Hot markets may see higher percentages.

Q2: How does this differ from ROI?
A: ROI considers all costs (purchase, improvements, etc.) while price increase percentage only compares purchase vs current price.

Q3: Should I include renovation costs?
A: No, this calculator compares purchase price to current value. For ROI calculations including renovations, use a different tool.

Q4: How often should I calculate this?
A: For homeowners, annually is sufficient. Investors may track more frequently depending on market conditions.

Q5: What if my result is negative?
A: A negative result indicates price depreciation, meaning the property is worth less than what was originally paid.

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