Growing Equity in your Home
Real Estate Equity
83% of Wealth comes from Equity.
Real estate equity is a large contributor to wealth. It is important to have a strategy to get you the wealth that you desire.
Over the past few decades, people's way of view when it comes to homeownership has changed. Unlike previous generations, like our grandparents, who bought a home with a 30-year mortgage and celebrated the day they made their last payment, today’s home buyers rarely stay in their home that long. Some move across the country, overseas, or is choosing a smaller home. As a result, the way mortgages are viewed has changed as well and often buyers are not building the equity in their homes the way it used to.
But there are benefits to building equity and paying down the loan, here are just a few:
• Flexibility – Having equity in your home gives you the flexibility to move if you need to or want to. For homeowners who plan to either buy a large home or perhaps downsize, having equity allows you to not only put money down on a new loan but pay for moving and closing costs.
• Safety Net – Life is full of unexpected expenses – job loss or relocation, unexpected illness or accident, natural disasters – the equity in your home can help you navigate these unexpected costs with a line of credit or the proceeds from a sale. Nothing is better than being sure that you are prepared for the unknown.
• Asset Recovery – Many homeowners over the last couple of decades have found themselves underwater in their homes; negative equity. By either making additional principal payments on the loan or reaping the effect of higher home values, building equity can help create wealth and turn a negative asset into a positive and will still turn out as a good investment at the end.
Homeowners might not plan to stay in their homes as long as their parents and grandparents, but there are still great reasons to focus on building equity in their homes. A home has always a great value into it and is always one of the first choices investors look for. A home is an asset, and treated properly is a wealth-building tool, unlike any other option.
Did you know that Treu Group has been helping homeowners build their wealth through real estate equity? Click here to receive your free equity builder. It is important to visit your money once a month and this is an easy way to check your equity too. We'd love to help you grow yours, too.