Take Advantage of Your Home Equity
As we have previously discusses in our Premier Homes Team blogs, equity is a major advantage to homeownership. Across the nation, home equity grew substantially throughout the past twelve months, largely due to the overwhelming real estate demand. Prices for homes of all types increased drastically, with some markets seeing returns in the upper teens. One of my favorite statistics provided by CoreLogic is that homeowners gained an average of $51,000 in equity last year alone. Now, some of you may be asking, what is the big deal? What can I do with equity except for when I sell? Well, below we have come up with a few, but not all, options for how to take advantage of your home equity.
The First Home Equity Advantage
Wants and needs for buyers has changed due to the pandemic. Most buyers are now looking for homes that can double over as an office or place of business. But not all buyers are looking to upsize. In fact, many empty-nesters are looking to downsize, and are finally able to buy a home that fits their needs. Homeowners who have been in their home for at least twelve months have equity that can go towards finding something they really want.
Moving may be a daunting task, but many home owners are now looking to move again due to the market. Whether you are looking to move away from the city because you no longer need to commute, or vice versa, using your home equity to do so can open up your available options. No matter your buyers needs, having equity in their current home will make for a more attractive offer for their next home.
Use Your Equity To Live In Your Dream City
Many people are looking to move away from their everyday life after the pandemic. Whether it is a wave of early retirements, or an opportunity to change career paths, many people used the pandemic as a sign to do something new. For many homeowners, this manifested as moving to the location they could only dream of. After all, having an average of $51,000 more in equity than the year before does make this more doable. Homeowners across the nation are looking to relocate to a new area, some as close as a new local zip code, and others across the country. Whatever you are planning to do, it has became a more realistic possibility because of equity. Now, they do not teach you these home hacks in school so it may be new to many people, but using your home as leverage into your next home is a common practice.
Home Equity Advantage For Business Use
We have all heard of the businesses that were started out of recessions. For instance, during 2008 there were close to one million new small businesses started. Some of these businesses grew to national and international conglomerates, i.e. Uber and AirBnB. The pandemic-induced recession was no different. Many people used this as a chance to start over or start something new.
We saw with record number of people quitting their jobs and not returning to the workforce who started their own businesses. What people didn’t realize that many of the 32 million small businesses in America did realize is that you can use your home equity to start a new business. While it is not always recommended and can be risky, many people use their equity to try to build their nest further. Borrowing money does have its risks, but if you have a business idea that you are passionate about, now might be the time to leverage.
Let’s Talk Home Equity Advantages
The bottom line is this: now is as good a time as ever to use your equity to your advantage. Whether that is move, start something new, or create a new life for yourself and family, now is the time. With interest rates slowly rising above 3%, it will only become increasingly harder to use your equity to your advantage without acquiring costs in another form. If you are interested in learning more about your equity, you can read many of the articles on the Premier Homes Team Blog. Some articles I would start with are: Home Equity and Wealth, Why Renters Missed Out, and The Seller’s Market in Real Estate. If you come across any questions, please do not hesitate to reach out to Premier Homes Realty in Louisville, Kentucky for all your real estate needs. Happy hunting (our MLS service).