Your Home, Your Investment

According to current real estate market trends, existing home sales still remain historically high. It’s been fascinating to watch the percentage increase in recent years, well into the double digits in our area. The figures are based on data analysis from single-family homes, townhomes, and condominiums. No matter what you call home, these statistics mean good news for you.

With other investment opportunities, it’s difficult to make decisions. Savings accounts? Mutual Funds? Bonds? CDs? The variables and the risks are often overwhelming. But buying a home is an automatic, wise investment. Because of the strength in the housing market, most owners have gained considerable equity in a home they might only have owned for a relatively short period of time.

You probably don’t study real estate market analysis, but you probably DO take a look at the flyers you receive from local realtors, letting you know about home sale activity in your immediate area. It’s exciting to see how the value of your property has increased! If you crunch the numbers as far as relative investment performance is concerned, it’s unbeatable.

Many homeowners have opted to put their equity to work for them now, while they are still living in their homes. A very popular product, but one still unfamiliar to many owners, is the home equity line of credit.

Mortgage rates are on the rise, but property values still remain strong. Current high loanto- value rates are an excellent incentive to apply for an equity credit line sometime soon. If you shop for the proper loan, you will only be paying interest on the amount of money you actually use. It’s good to know that you have a strong line of credit that you can take advantage of whenever you like. It’s a prudent move towards future security.

You may then use your line of credit for anything you choose, including making improvements to your home. If you elect to improve your dwelling, you’ll increase your property’s value and therefore, your equity. That’s a positive cycle.

Because a home equity line of credit is technically a real estate loan, the annual interest is deductible. And the interest rates are usually a fraction of those on retail credit cards or other loans, such as financing a car. Owners frequently use these loans to consolidate debt and reduce their monthly payments. So whether it’s near-term or long-term, the equity you accrued in your home is a definite plus. Living in your investment? It doesn’t get much better than that.

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