FAQ: How to Set Real Estate Appreciation Rate
You can set a specific appreciation rate for real assets in the Discovery > Asset section. This rate will control how much your home, vacation property and/or rental properties will appreciate over the life of your plan.
You can choose either the Inflation Rate (currently 2.1%), Real Estate Appreciation Rate (currently 3.1%), or Custom Rate. If you choose Custom Rate you can enter either a negative or positive rate. Inflation rates and Real Estate Appreciation Rate are set according to the FP Canada Guidelines.
Caution: Because real estate assets are often high value, even a small difference in appreciation rate versus inflation can lead to a large change over a 30-50 year projection.
In Planning > Projections > Advanced Options you can also change the real estate appreciation rate asset by asset.
Warning Message: If the real estate appreciation rate is set above a certain threshold a warning message will appear highlighting the long-term impact of that aggressive assumption.