Real Estate Agents at Sage Realty Discuss the Benefits of Home Ownership and How Home Ownership Offers an Asset-building Strategy
Home ownership continues to be a popular goal. However, there are many questions and concerns that go with home ownership and purchasing a home. With rising house prices and concerns over the continually increasing wealth disparity between the middle and upper classes, many wonder if purchasing a home is a wise investment. There are also other concerns that come into play—for example, is owning a home more cost-effective than renting, or will you get a return on your investment? When should you contact a real estate agent?
There are several benefits to owning a home, but perhaps the biggest is the ability to use your home as a strategy to build your personal wealth. Finding a quick cash source or loan is not always easy, and home equity can provide the leverage you need to advance your personal wealth through other means, all while getting the multitude of benefits of owning a home. In the past, this technique was misused with disastrous results, but done wisely, it can be an invaluable tool.
Using Your Equity to Invest
Money has the ability to generate more money. When you invest in a good home, identified as such by a good real estate agent, you should expect to build equity. That equity can be leveraged to generate more cash. The key is to use the equity wisely, and invest it in something you have researched well. When done thoughtfully, the stock market, advanced education and starting a business are some of the most common ways people move up the economic ladder in America today.
Investing in the Stock Market
For those who have never invested in the stock market, it can be a daunting step to take, especially when using precious home equity. Something that can be helpful to remind yourself that investing in stocks has historically been more lucrative than bonds, gold and Treasury bills. The first thing to decide is your comfort zone when it comes to risk. Are you a risk-taker, opposed to risk or somewhere in the middle? The next question is how much time you have. Once you have answered some basic information, you can begin to “play” the stock market. Remember to stay diverse, do your research and use reputable sources. Many low-fee companies provide excellent advice for free on their websites.
Investing in Advanced Education
There are excellent reasons to advance your education. It helps you become a more versatile employment prospect that is more hirable. Advanced degrees increase your earning potential. Education is still a desired quality among employers, and using home equity to invest in yours is a great way to increase personal wealth.
Investing in Entrepreneurship
Do you have an idea sitting around that you know is a money-maker? Home equity can give you the funds you need to get started. While entrepreneurship is not easy, it can pay off in ways another job may not.
If you are ready to invest in your future, contact a real estate agent from Sage Realty LLC at 610.687.4000 and get started today!