How to harness your home’s equity to create a stable retirement plan.
Did you know that the equity in people’s homes rose faster last year than most people’s yearly wages? The amount of home equity in the United States is at an all-time high, and we’ll continue to see it rise because inflation only pushes up home values. So if you own a home and have a strong equity position, how do you put it to work for you?
For one, you can harness your home’s value by doing a cash-out refinance or a home equity line of credit, which you can use to buy another property. When you buy another property using those funds, you can rent it out to a tenant whose monthly payments help pay down the mortgage.
“The amount of home equity in the United States is at an all-time high.”
Judging by the way properties are appreciating in today’s market, a home worth $250,000 today will likely gain $20,000 to $30,000 in value over the next year. In 10 to 15 years, you could have a $400,000 home. That will help you generate a lot of savings for your retirement years.
If you have any questions about using real estate to create a plan for your retirement, don’t hesitate to give me a call or send me an email. I’d love to help you.