This post, understanding home equity and how to get some in Grantsville UT is going to be a 2 part blog post. (both on same page).
First I want to help you understand what home equity is, and why it should be important to you and your family.
Secondly I want to pull some examples from actual houses in Grantsville that you can relate to. Actually, I would hope that you would feel inclined to put yourself in the roll of home buyer or home-owner in some of these scenarios.
Keep in mind that this is not meant to be investment advice. Just, conversation about a facet of the Real Estate business you should be familiar with. So….
Understanding How Home Equity Works and Why Buying a Home Can Be Your Best Investment
When delving into the world of real estate and investment property, there are many terms that will come up that require further explanation. Whether you’ve never heard the phrase ‘home equity’ before or you have a little familiarity, here are the ins and out of what it means and how this asset can help your financial outlook.
All About Home Equity
Essentially, home equity refers to your portion of the value of your home, and the amount of this figure is important because it is included among your assets when determining your net worth. If this sounds confusing, think of it this way: if you have completely paid off the cost of your Grantsville home, the value of your home equity is this total amount. Of course, because most people seek a lender to borrow money from when they purchase a home, their home equity would consist of their down payment and whatever amount they’ve paid down on the mortgage since purchase.
An Example Of Home Equity
To provide further clarification, let’s use the example of a house in Grantsville that has been purchased for $300,000. In the case that a down payment of 20% has been provided at the time of purchase, the equity in the home would be $60,000. Since this amount is the percentage and cost of the house that’s been paid down, this is the amount of the house that is actually owned and this will be figured among an individual’s assets.
How Home Equity Works
As you pay the amount that you owe on your home each month, you are paying off your total debt and thereby increasing your equity. Since this amount of money is considered an asset that belongs to you, it can be used down the road to buy another home or invest in other important things like education or retirement. While paying off the amount owed on a home is a considerable investment, if the value of your home increases, this means that you’ll still owe the same on it but your home equity will have automatically increased.
As an asset that is part of your financial net worth and can be used down the road to fund other investments, home equity is a very useful term to know when it comes to purchasing a home.
If you’re on the market for a home and are considering your options, you may want to contact one of our local real estate professionals for more information.
What Others Say About Home Equity
. To build equity faster, there are a number of things you can do, including … Some remodeling and improvement projects boost a home’s equity.
See these bathroom design and remodeling ideas to get you started. ….. Value report, homeowners who build a garage see a 62% return on investment.
. If you think you’ll be in the home for a while, go ahead and renovate so you can better enjoy the property. Otherwise, if you’re renovating for …
How To Get Some Home Equity in Grantsville Utah.
I have selected Grantsville UT as our test city here for the post on understanding home equity and how to get some in Grantsville UT.
Not that they are any better from an appreciation standpoint than other popular Tooele Cities but because of the it’s easy for me to do”.
Since this is a very unscientific post the best numbers we get will just be “best guesses”.
First lets pick a house to use as the test house.
Here is a current listing on Cooley in Grantsville .this single family home just had a price change. The new price is $274,000 and some change. Let’s say $275,000.
If you bought that house tomorrow @ list, using a USDA no down payment loan and you checked the value one year from now. The difference between what you payed today and what you could sell for in 12 months would be would be your money! Your gain. Your wealth!
Is it significant? It could be. Homes in Grantsville have appreciated almost 50% over the last 5 years, and have shown an increase in value of 15.4% over the last 12 months. (according to best places).
If property values continue to climb at this rate, then in 5 years you and your family can claim a gain of almost $137,000. When you sell, the bulk of that money belongs to you
If you are more short term oriented, then multiply the $275,000 purchase price by 15.4% (last years Grantsville appreciation) and see that if things continue moving along as they have, you will have earned over $42,000 by just paying rent to yourself.
My experience has shown me that not many folks are disciplined enough to save over $3500 a month by just paying their rent to themselves. Hint ! Hint!
So, just for the fun of it. Pick a house from among these available and see what your story would be.
Here are all of the homes listed for sale in Grantsville Utah.
.If you like what you see, believe what it means and would like to be part of it, give me a call. Berna Sloan 435-840-5029. My partner Chris & I know how this goes together and have helped 100s of families find their dream home and be their own landlord.
It’s not too late for understanding home equity and how to get some in Grantsville UT.