How to Tap into Your Home Equity
Living in Orange County has many benefits. There are obvious benefits like fantastic weather and beautiful landscapes, and there are others like rising property values and seemingly endless investment opportunities. If you own a home in Orange County, especially for more than 10 years, chances are you’ve built some home equity that can be of value to you in today’s market.
Equity is an asset, so it’s considered part of your net worth which you can take partial or lump-sum withdrawals from depending on the lender. While it might not make sense for you to tap into your home’s equity right now, there may come a time when you might need or want to. Here are some of the most common ways that people tap into their home equity.
4 Ways to Tap into Your Home Equity
Depending on the age of your home, you may have to make repairs that cost more than you feel comfortable spending. Little repairs that come up along the way are manageable, like new paint and windows, but if you need something like a new roof or to replace piping, you may be looking at upwards of $25,000 for repairs. According to a recent survey from Bankrate.com, 75% of people thought that using home equity for major home repairs was an acceptable use of the finances. If you haven’t planned for this type of situation, you’re going to need to find the funds to make the repairs and your home equity could be the solution. This solves the immediate issue of needing money without having to take out a costly personal loan.
Tuition or Educational Expenses
As a parent, planning for your children’s future is a huge part of your job. From cars to phones and computers to college, there are so many things that you have to account for. When the time comes to send your child to college, using your home equity can help alleviate the financial burden of tuition. Student loans carry hefty interest rates. If you have the equity, this is one of the most selfless ways you can use it, by giving your child an opportunity to get an education without student loan debt hanging over their head.
Big Ticket Items
There comes a time when you want to give your home an upgrade. One way to do this is to upgrade the appliances or furniture, but those things can be costly. Only 9% of people surveyed think that big ticket items are a deserving use of home equity. But things like washers, dryers and refrigerators are home essentials that when bought new can carry quite a price tag. The same goes for furniture such as sectional couches, tables, chairs, bedframes and mattresses. If you want to give your home an interior facelift, you may be able to find the funds in your home equity.
An Investment Property
As a real estate agent, Rosemary Hieber believes this is one of the best uses of your home equity. Owning real estate continues to be one of the best investments you can make into your future. Using your home equity to purchase an investment property can help you plan for retirement and create another stream of income for you. When you head into retirement, having multiple streams of income helps you maintain the lifestyle you want to live as you grow older.
Buy an Investment Property in Orange County
If you’re considering tapping into your homes equity by purchasing an investment property, Rosemary can help. She has extensive knowledge of Orange County as well as a vast network of resources at her disposal. If you want to find an investment property in Orange County, now is the best time of year to make that dream a reality. Contact her today to find the investment property that’s right for you.
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