Monday, January 3, 2022 / by John Salkowski
Here are the best ways you can invest using the equity in your home.
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As everyone knows, the housing market has grown exponentially over the last few years. As a result, many homeowners are sitting on a ton of equity. This is a great problem to have, but some people don’t know what to do with all their rapidly appreciating assets. That’s why we want to go over how homeowners can take full advantage of their new equity:
1. Renovate your property. Why not take some of your equity and increase the value of your existing home? If you like where you live, this is a great option.
2. Purchase investment property. Real estate is a fantastic investment, so it might be worthwhile to use your equity for the down payment on an investment property.
"Be methodical and make sure you get the most out of your equity."
3. Other investments. Whether you want to put your money towards the stock market or retirement, your equity can truly go anywhere.
4. Paying off debt. If you have student loans or any other debts, you might be able to use your equity to pay them off completely.
Unfortunately, there are a few cons to taking equity out of your home. The money will be taxed, and every investment has risk. We also don’t recommend using your equity on a luxury purchase, such as a nice vacation. Instead, be methodical and make sure you get the most out of your equity.
If you have any questions about how to use your equity, please call or email us. There’s no cost or obligation to reach out, and we look forward to hearing from you!