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Financial professionals often reference the “5-year rule” when discussing real estate, and for good reason. In Niagara, history shows that homeowners who remain in their property for at least five years tend to recover transaction costs and build meaningful equity.
Equity grows in two ways: mortgage principal reduction and market appreciation. Even during periods of price correction, consistent mortgage payments quietly build value. This is often overlooked when people focus solely on sale price comparisons.
A homeowner purchasing in 2020 and selling in 2025 saw modest price appreciation, yet the real gain came from principal paydown over time. That patience created a stronger financial position.
Shorter timelines, especially in declining or flat markets, increase risk. Selling within three years can result in losses even after equity gains are considered.
The takeaway isn’t “never move early,” but rather to understand how time influences outcomes. Real estate rewards structure, not impulse.
For real-life examples and deeper explanations, watch my Value Series on Instagram or YouTube.
