If you’re a houszowner, odds are your equity has grown significantly over the last few years as housz prices skyrocketed and you made your monthly mortgage payments. Housz equity builds over time and can help you achieve certain goals. According to the latest Equity Insights Report from CoreLogic, the average borrower with a housz loan has almost $300,000 in equity right now. As you weigh your options, especially in the face of inflation and talk of a recession, it’s important to understand your assets and how you can leverage them. A real estate professional is the best resource to help you understand how much housz equity you have and advise you on some of the ways you can use it. Here are a few examples. 1. Buy a Housz That Fits Your Needs If you no longer have the space you need, it might be time to move into a larger housz. Or it’s possible you have too much space and need something smaller. No matter the situation, consider using your equity to power a move into a housz that fits your changing lifestyle. If you want to upgrade your housz, you can put your equity toward a down payment on the housz of your dreams. And if you’re planning to downsize, you may be surprised that your equity may cover some, if not all, of the cost of your next housz. A real estate advisor can help you figure out how much equity you have and how you can use it toward the purchase of your next housz. 2. Reinvest in Your Current Housz According to a recent survey from Point, 39% of houszowners would invest in housz improvement projects if they chose to access their equity. This is a great option if you want to change some things about your living space but you aren’t ready to make a move just yet. Housz improvement projects allow you to customize your housz to suit your needs and sense of style. Just remember to think ahead with any updates you make, as some renovations add more value to your housz and are more likely to appeal to future buyers than others. For example, a report from the National Association of Realtors (NAR) shows refinishing or replacing wood flooring has a high cost recovery. Lean on a local professional for the best advice on which projects to invest in to get the greatest return on your investment when you sell. 3. Pursue Your Personal Goals In addition to making a move or updating your housz, housz equity can also help you achieve the life goals you’ve dreamed of. That could mean investing in a new business venture, retiring or downsizing, or funding an education. While you shouldn’t use your equity for unnecessary spending, leveraging it to start a business or putting it toward education costs can help you achieve other lifelong goals.
4. Buy an Investment Property
Pay in full for a housz in another state and carry the paper on a sale. Turn it into income for the next 30 years with little or no expenses If you begin early in your life and collect enough of those you could have a steady income in your retirement years.
Bottom Line Your equity can be a game changer. If you’re unsure how much equity you have in your housz, let’s connect so you can start planning your next move.
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