What Will You Do With Your Equity?
According to CoreLogic, homeowners across the country are gaining significant equity.
Over the past year, the average homeowner in California gained $12,000 in equity, growing their overall net worth.
And this doesn’t count what your overall gain has been. Here are some examples. A client purchased a home for $225,000. She sold for $665,000. And this just by paying her monthly mortgage. The payment was about the same as paying rent.
Another client bought in the high $700,000’s and in about 10 years made about $600,000.
About 4 years ago, a client’s home was sold in the $700,000’s. Today that home is selling for nearly $1,000,000.
In all these cases, the owners decided to move towards a home that fit them better. In some Cases they stayed in the area, in others just changed neighborhoods. In another case they moved out of state, and yet another case, the sellers purchased a luxury RV and are happily traveling and living all over the United States.
The gain in equity also applies to homes owned as rentals. In one case, a client sold a multiple unit property, again, earning not just income but equity. With the equity, they purchased a single family home for family to live in and rent from them. This avoided capital gains taxes.
There are so many options on how to use built up equity for different stages in life. Also check out my other blog on equity.
In all cases, it’s important to protect your assets with proper planning.
To go over some of your options, feel free to give us a call.