If you are a homeowner, chances are you have some equity sitting there. Real estate prices tend to fluctuate a little bit in the short term, but over the long term, it almost always increases in value. If you have been making monthly mortgage payments and you purchased your home at least several years ago, chances are you have a lot more equity in your home than you may think.
With Homeshares, that equity is easily accessible, and unlike a HELOC or second mortgage, there are no associated monthly payments to make. You get cash but do not have an associated monthly payment that follows it. This allows for an extra layer of financial freedom that can help build long term wealth. If using Homeshares is right for you, here are the type five ways to invest your home equity.
Investing in the stock market can be risky, but with a well diversified portfolio, a long enough time frame, and a bit of patience, the chances of your portfolio significantly appreciating are almost guaranteed. Many people are using their equity from Homeshares to purchase a diversified stock portfolio.
Your home will increase in value over time, and if your equity is also invested in the stock market, you can use that leverage to double your gains.
More Real Estate
Since you already have first hand knowledge of how quickly equity can grow in a real estate asset, why not double up your gains by investing in a rental property?
One common and safe strategy is to use Homeshares to tap into the equity in your primary residence and use that to purchase a rental home. Becoming a part time landlord is a great way to generate some extra income and build long term wealth, and with Homeshares, it is easier than ever.
If your existing home needs routine maintenance or you want to make a significant improvement, such as a remodel or addition, using your home equity can be a fantastic way to find the cash to make that happen.
In the past, people would often use a second mortgage for something like that. That is not always a bad idea, but it does come with a second mortgage payment. With Homeshares, you can get the cash for your remodel or addition right from your existing home equity without adding an additional monthly payment to your budget. The best part about using this strategy is that since your home improvement will raise the value of your home, you may be essentially getting it for free.
If you are like many people, you may have high high interest consumer debt you are working to pay off. Medical issues, student loans, or even unexpected car repairs can cause even the most responsible people to fall into the debt cycle. Using home equity can be a great way to reduce that debt and free up money in your budget to start saving and investing for yourself.
Inflation has made everything more expensive lately, but the inflation rate for higher education expenses has been astronomical for a long time. A college degree is important for many career paths, and the associated debt involved in paying for school can be crippling. Many parents are giving their children a head start in life by using their home equity to fund education, and when you use Homeshares, there is no monthly payment at all.
There are dozens of great ways you can re-invest your home equity. Before you make a decision on the best way to access your cash, just make sure to consider all of your options, so you do not end up with an unaffordable monthly payment afterward.