Home Ownership = Equity


Yesterday, I shared information from the latest Home Price Expectation Survey by Pulsenomics. Results showed that over the next 5 years, home values will appreciate an average of 3.5%/year and cumulatively will grow by approximately 18%.

What does this mean for a homeowner’s equity position?

Let’s assume you bought a $250,000 home in January 2016. Looking at the projected increase in the price of your home, how much equity would you have over the next 5 years?

home-equity-appreciationThe prediction that home prices will increase by 4.5% this year alone, will give you a positive equity position of over $11,000 in just one year.

Over a five-year period, you will have increased your equity by over $46,000! This figure does not take into account your monthly principal mortgage payments – which will add even more to your equity position.

Real Estate Bottom Line

In many cases, home equity is one of the largest “portion” of someone’s overall net worth.  Home ownership offers you and/or your family the ability to build equity and to leverage that equity. If you are looking to buy your next home, let’s get you started on the journey to making a smart financial decision!

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