If you’ve followed me on Facebook, Twitter or on this blog, you’ve heard me say this over and over: Owning real estate is the best way to get you financial secure. And if you own investment real estate, like single-family rentals, duplexes, triplexes or quads (you can live in one unit and it is considered owner occupied – much easier to qualify), or apartment buildings, you will be on your way to financial prosperity.
This article is a great reminder of that with some solid numbers to back it up.
Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.
So, what does this mean for homeowners and their equity position?
As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years?
Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.
Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.
Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!
How much home can you afford to buy? That is your first question. Click here to find out what lenders look for when they lend you money, and a great Home Affordability Tool that you can work out your numbers and get a good idea of how much house you can afford.
And I am always here to answer any of your questions. I don’t care if you are 3 years away from buying, the sooner you start preparing, the better off you will be. Please call me at 503-683-2508, click here to send me an email or click here to schedule a day and time for a phone call.
I am the guy that is going to get you ready to buy your next home or investment property.
I look forward to speaking to you!