Compute your after-transaction-costs rate of return on purchasing a house for $1,000,000 if you have to pay 0.5% transaction fees up front and pay a 6% broker's commission (plus 2% in waiting costs) at the end of 1 year.
Assume a $4,000/month effective dividend of enjoying living in the house.
Assume that your opportunity cost of capital (not the bank quoted interest rate) is 7% per year. At what rate of capital appreciation would the NPV be zero if you resold the house after 1 year?