Your equity is a powerful tool that can help you achieve your goals as a homeowner. And chances are, your equity grew substantially over the past year. According to the latest Equity Insights Report from CoreLogic, homeowners gained an average of $51,500 in equity over the past year.
If youâ€™re looking for the best ways to use your growing equity, here are four options:
If youâ€™re finding you no longer have the space you need, it might be time to move into a larger home. Or, itâ€™s possible you have too much space and would like something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. Moving into a larger home can provide extra space for remote work or loved ones. Downsizing, on the other hand, may mean saving time and money by caring for a smaller home.
If the size of your home isnâ€™t a challenge but your current location is, it could be time to relocate to a new area. Maybe you enjoy vacationing in the mountains, at the beach, or another area, and youâ€™re dreaming of living there year-round. Or perhaps the distance between you and your loved ones is greater than youâ€™d like, and you want to close the gap. No matter what, your home equity can fuel your move to the location where you really want to live.
If youâ€™re not ready to move into a new home, you can use your equity to invest in a new business venture. As the U.S. Small Business Administration Office of Advocacy says:
â€œThere is an estimate of 31.7 million small business owners in the United States, many of them started their business with the equity they had in their home.â€
While itâ€™s not recommended that homeowners use their equity for unnecessary spending, leveraging your equity to start a business that youâ€™re passionate about can potentially grow your nest egg further.
Whether you have a loved one preparing to head off to college or youâ€™re planning to go back to school yourself, the thought of paying for higher education can be daunting. In either situation, using a portion of your growing equity can help with those costs, so you can make an investment in someoneâ€™s future.
Your equity can help you achieve your goals. If youâ€™re unsure how much equity you have in your home, letâ€™s connect today so you can start planning your next move.