Homeowners & Home Equity
For many homebuyers, the potential of having home equity is a big reason why they look to enter the real estate market. Purchasing a home is an incredible investment that will grow in value over time, especially if you are looking to make this home your long-term residence.
In this article, we will explore the benefits of having home equity so that you can understand the perks before entering the real estate market.
Many homebuyers choose to enter the real estate market and purchase property to get a positive return on their investment. The value of your home is more than likely to increase over time, especially if you are residing there for multiple years. Even without any home improvement work — the value of your home will grow!
Owning a home can also act as a great emergency fund that can be utilized on a rainy day. Since the value of your home is likely to increase over the years, when you do decide to sell your home, you will be able to turn a profit. You can utilize this money for other investments or in case of emergency - the choice is yours.
Having the option to not pay rent and instead pay yourself via a mortgage is a great way to build equity for retirement. By investing in a home early, you can enjoy not having to pay a mortgage by the time you reach retirement. Alternatively, you can sell your home to make a profit to use once you are done working. Hello, vacations and other expenses you would not typically indulge in!
For folks who are looking to diversify their investment portfolios, having home equity is a great way to build wealth. This is especially true for those who want to build generational wealth, as can be passed down to other family members.
After you purchase a home, the more work you do to improve your space the more your home will be worth when you decide to sell. This also gives the freedom for customization to make your space yours – something you would not be able to do with a rental.
We hope this article helped give you some inspiration for having home equity. If you are looking to start your real estate journey, work with one of our professionals at VSells&Associates today!
Whether you are buying or selling, we at VSells & Associates make it our mission to guide our clients through the whole process. We make moving simple, straightforward, and as stress-free as possible.