Tag Archives | #moveupbuyers

    4 Proven Ways Real Estate Can Build Sizable Family Wealth

    4 Proven Ways Real Estate Can Build Sizable Family Wealth

    4 Proven Ways Real Estate Can Build Sizable Family Wealth | Simplifying The Market

    Recently, David Greene, co-host of the BiggerPockets podcast and a nationally renowned author and speaker, wrote an article in Forbes explaining how investing in real estate could help build wealth. Many of the points he made also apply to a family owning their own home. Here are a few:

    1. Appreciation

    “The rising of home prices over time, is how the majority of wealth is built in real estate. This is the ‘home run’ you hear of when people make a large windfall of money. While prices fluctuate, over the long run real estate values have always gone up, always, and there is no reason to think that is going to change.

    One thing to consider when it comes to real estate appreciation affecting your ROI is the fact that appreciation combined with leverage offers huge returns. If you buy a property for $200,000 and it appreciates to $220,000, your property had made you a 10% return. However, you likely didn’t pay cash for the property and instead used the bank’s money. If you consider that you may have put 10% down ($20,000), you actually have doubled your investment, a 100% return.”

    2. Leverage

    “By nature, real estate is one of the easiest assets to leverage I have ever come across—maybe the easiest. Not only is it easy to leverage the financing of it, but the terms are incredible compared to any other kind of loan. Interest rates are currently below 5%, down payments can be 20% or less, and loans are routinely amortized over 30-year periods.”

    3. Paying Off the Debt

    “One of the best parts of investing in real estate is the fact that … you’re slowly paying down your loan balance with each payment to the bank… After enough time passes, a good chunk of every payment comes off the loan balance, and wealth is created.”

    4. Forced Equity

    “Forced equity is a term used to refer to the wealth that is created when an investor does work to a property to make it worth more…

    Example of this would be adding a third or fourth bedroom to a property with only two, adding a second bathroom to a property with only one, or adding more square footage to a property with less than the surrounding houses.”

    Though Green was talking about investors, the same could be said about a family upgrading their own home.

    Bottom Line

    Green put it best by saying:

    There are many ways to build wealth in America, but real estate might be the safest, steadiest and simplest way to do so.”

    To read the full article, click here.

    Source: Michigan Real Estate Updates

    Do You Know How Much Your Home Has Increased in Value?

    Do You Know How Much Your Home Has Increased in Value?

    Last year we saw headlines about a possible housing market bubble, and many wondered if Americans still felt confident about the value of their homes. Recently, the 2018 Houzz & Home Study revealed:

    Homeowners with mortgages have seen their home equity more than double since 2011, increasing to a record-setting $8.3 trillion in 2017.”

    The average homeowner gained $16,200 in home equity between Q2 2017 and Q2 2018 according to the latest release of CoreLogic’s Home Equity Report.

    Since 2011 home values have increased significantly throughout the country, with prices rising by 5.1% in 2018 alone. When surveyed, homeowners revealed the top four reasons why they felt their homes had increased in value.

    1. Desirable Location
    2. Improved National Economy
    3. Improved Local Economy
    4. Low Home Inventory in My Area

    As we can see, not only does the data show that the homes have appreciated, but homeowners also believe they know why. Many have taken advantage of the opportunity to use their newly found equity to sell their current house and move up to their dream home!

    2019 will be a good year for the homeowners that still want to take advantage of their home equity! CoreLogic forecasts that home prices will increase by 4.8% by the end of the year.

    Bottom Line

    If you are a homeowner who would like to find out your current home value, let’s get together to discuss the hidden opportunities in your home!

    Source: Michigan Real Estate Updates

    The Tale of Two Markets [INFOGRAPHIC]

    The Tale of Two Markets [INFOGRAPHIC]

    The Tale of Two Markets [INFOGRAPHIC] | Simplifying The Market

    The Tale of Two Markets [INFOGRAPHIC] | Simplifying The Market

    Some Highlights:

    • An emerging trend for some time now has been the difference between available inventory and demand in the premium and luxury markets and that in the starter and trade-up markets and what those differences are doing to prices!
    • Inventory continues to rise in the luxury and premium home markets which is causing prices to cool.
    • Demand continues to rise with lower-than-normal inventory levels in the starter and trade-up home markets, causing prices to rise on a year-over-year basis for 80 consecutive months.

    How will this impact your next move? Reach out to John and discuss:

    Message John

    Source: Michigan Real Estate Updates