One of the biggest opportunities right now is leveraging the equity in properties you already own. Pretty much everyone who currently owns the property has much more equity now than they did 2 years ago, and this can be especially true in inflationary times.
What is Equity?
Equity is the difference between what your property is worth versus the balances on any mortgages or liens recorded against it. So, if you have a property worth 500K, and you owe 300K in mortgage balances, your equity is $200,000. With that said, all the following are general illustrations. If any of this rings true for you, let’s talk personally to review how these concepts could apply to you and your situation!
How Can You Use Equity?
Improve Your Property
Equity can be harnessed to fund renovations that improve your property’s value and enjoyment. This is probably the most typical way homeowners utilize their equity!
Pay Off Balances More Quickly And Counter Inflation’s Pressure
It is possible to make advanced payments on your mortgage via an equity line and in some cases pay your home off in ½ to 1/3 of the time by using innovative products such as All in One Mortgage or Money Masters Account. Having access to your equity allows these tools to work!
Use Equity to Buy Investment Properties
Rental rates have gone up about 20% in the last year alone nationally and the opportunity to own is excellent right now! Your equity can literally be the down payment to purchase an income-producing property that makes money for you. It is possible to own properties in remote markets where cash flow well, too.
Use Equity to Increase Retirement Investment
Equity can be used to increase retirement investments. This can be a strategic part of retirement planning. During inflationary times, the value of savings diminishes – equity investment in inflation hedges can help!
Learn More!
If you are curious about ways to harness your equity, or even how much equity you have, please feel comfortable emailing us at pberkobin@homeside.com, or grabbing 10 minutes on my calendar if you would like to discuss any of these strategies in more detail!
Want to learn more about homeownership? Contact Giselle to get started!
