The 18-year property cycle is like a game that repeats every 18 years, making house prices go up and down like waves in the ocean.
Imagine you have a toy car that goes around a track. Every time it finishes one lap, it starts again from the beginning, this is what happens with houses over 18 years. At first, houses are cheap, and people start buying them. More and more people want to live in those houses, so their prices go up. This part is like when you're playing a game and everyone wants to be the winner.
After about 18 years, something changes, maybe the toy car’s track gets longer or the players get tired. Houses become more expensive, and not as many people can buy them. Then it starts all over again: prices go down, then up, just like the cycle in a game of tag.
This cycle helps adults understand when is a good time to buy a house, like knowing when your favorite toy will be on sale again!
Examples
- A family buys a house in the 1980s and sells it in the 2000s, making a profit.
- A young couple moves into an apartment when prices are low, then sells it after 18 years for much more.
- A teacher notices that property values rise every generation.
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