4 Ways to benefit from Homeowner Equity
Your equity is a useful asset that can enable you to achieve your homeownership goals. And chances are, your equity has increased significantly in the last year. Homeowners earned an average of $51,500 in equity over the past year, according to CoreLogic’s newest Equity Insights Report. Here are four choices for putting your growing equity to the best possible use:
- Buy a home that’s perfect for your needs
If you’re realizing that you don’t have enough space in your current house, it may be time to upgrade. It’s also possible that you have too much space and want something more compact. In any case, consider leveraging your equity to fund a relocation into a home that better suits your evolving needs. Moving to a larger home can give you more space for remote work or family members. Downsizing, on the other hand, can save time and money by requiring less maintenance.
- Move to your dream location
If the size of your property isn’t an issue, but the area is, it might be best to change. Perhaps you prefer spending your vacations in the mountains, at the beach, or somewhere else, and you wish you could live there all year. Alternatively, perhaps the distance between you and your family and friends is larger than you’d like, and you’d like to bridge it. Whatever the case may be, your home equity can help you relocate to the area of your dreams.
- Start a new venture
You can use your equity to invest in a new business endeavour if you aren’t ready to move into a new property. As the Office of Advocacy of the United States Small Business Administration puts it: “In the United States, there are an estimated 31.7 million small company owners, many of whom started their businesses with the equity in their homes.” While it’s not a good idea for homeowners to use their equity for frivolous spending, using it to start a business that you’re passionate about can help you expand your savings.
- Invest in your education
Whether you’re helping a loved one prepare for college or planning to return to school yourself, the prospect of paying for a higher education might be intimidating. In any case, a percentage of your rising equity can be used to help with those fees, allowing you to invest in someone’s future.