Building Equity

Equity in real estate is not always immediate. Good deals are out there in any market, and being in an equity-positive situation can be a reality if you purchase correctly. Equity generally builds over time and most real estate purchases have a long-game benefit.

Building wealth through real estate offers a huge opportunity for financial growth. However, like any other investment, you need to be smart about it, understand the pros and cons, and work with knowledgeable professionals to help advise you.

Getting on the property ladder

Rates and affordability are legitimate concerns but with that getting on the property ladder is still something we believe firmly in. What you buy, where you buy and how we structure the deal makes all the difference. Rates are just one piece of a much bigger picture.

We can get your final interest rate into the 6s by negotiating buydowns. A seller-funded rate buydown is often worth more to a buyer than the same amount off the price.

Ask us how we got our client's interest rate down by almost 2 points.

What about when values aren't increasing as fast?

Still makes sense to buy, in my opinion, provided you make the right purchase and get the right deal in the right location. There is opportunity in every market and if you purchase with the long game in mind, a home's equity can benefit you in years to come.

Buying also has a security element that you can't really put a price tag on. Being a tenant and relying on an owner's situation for the longevity of your lease is stressful. Having to move unexpectedly is stressful. Having to move because you decided you don't like where you are, or you have neighbors in an apartment building that are noisy, is stressful. There's a whole other element to consider when buying that has immeasurable value.

Buying in a slower market means two things. One, you likely do not need to buy at a premium price. Two, the equity you can build over a year of homeownership is far better than what you will yield in a traditional savings account, especially when you factor in the monthly mortgage payments that pick away at your principal vs. rent payments that never financially work for you.

Ask us how we negotiated $50,000+ worth of repairs for our client.

Maintain your home and protect your investment

I can't stress this enough. Investing in your home can also build value, but maintaining it protects the asset.

Ask us why we suggested new construction to another buyer.

Borrowing against the equity in your home

Equity can also provide borrowing security. While I believe in the importance of paying off your mortgage as quickly as possible, there is security in having equity in your home.

I'll leave you with this. The bottom line is buying, getting on the property ladder, owning something, and letting it grow your wealth is a good thing!

Let's run some numbers together. Call or text us at 541-728-1143.