Home equity in most areas of the country has declined by 40% or more and it probably would take some time before the value would increase just like the stock market.
Selling your home and taking the advantage of buying a much cheaper house thats on sale in your neighborhood might not be the right thing to do at this point.
Your home is nothing like a stock market investment. While you can trade stocks, you will find it quite hard to trade homes as these are considered capital investments. The tax consequences that come with you giving up your home would also be quite costly.
There is a negative side to selling your home. The perfect time to sell a house was 2 years ago so selling it this time would not be a very good idea. If you keep your house and the home prices will be stabilized, just like what happens in the stock market, the value of your home would most probably increase in the future.
So, how do you turn your home into an asset without actually selling it?
One way to look at your home is like an investment. Over time your home equity should grow again and you should be able to pass it on to your kids or tap into the equity when you retire.
If you are not in dire need of cash and you think you can still afford your monthly dues, you should be patient enough to go on paying for it. Time is definitely on your side right now.
There are specific ways to turn your home into an asset.
First, you may bank on home equity. When you get your home fully paid off and you need money after you retire, you may try applying for reverse mortgage on it.
Paying off your home before you retire means you have to spend more or follow the biweekly method to accelerate payments.
Second, you can pay off your mortgage and put up your home for rent or for lease. You may consider purchasing another property. Doing this would get you to save enough for your retirement.
A third way of looking at your home as an investment, is that every dime you spend for paying off mortgage should not necessarily come from your retirement savings. In fact if you do some planning in advance and if your home appreciates in value, you could even sell your home in retirement, buy a new home at a lower price, and keep the difference as investment savings.
Your schedule is hectic and you have other bills that you need to pay every month so you would most likely find it hard to save. Settling your mortgage accounts before retirement and buying a cheaper property would produce savings that you can use when you retire.
This may not be the best financial strategy but is certainly one way of accumulating retirement savings.
Use the mortgage acceleration method. This is the best way to pay off your home before retirement.
With the mortgage acceleration program you can slash 13 years of your mortgage and save thousands without changing the lifestyle or refinancing your home. Imagine getting rid of the mortgage payment without spending more. Now that's a great investment in yourself and not to mention your home is fully paid off and you don't have to dip into retirement savings to pay for mortgage.
Selling your home and taking the advantage of buying a much cheaper house thats on sale in your neighborhood might not be the right thing to do at this point.
Your home is nothing like a stock market investment. While you can trade stocks, you will find it quite hard to trade homes as these are considered capital investments. The tax consequences that come with you giving up your home would also be quite costly.
There is a negative side to selling your home. The perfect time to sell a house was 2 years ago so selling it this time would not be a very good idea. If you keep your house and the home prices will be stabilized, just like what happens in the stock market, the value of your home would most probably increase in the future.
So, how do you turn your home into an asset without actually selling it?
One way to look at your home is like an investment. Over time your home equity should grow again and you should be able to pass it on to your kids or tap into the equity when you retire.
If you are not in dire need of cash and you think you can still afford your monthly dues, you should be patient enough to go on paying for it. Time is definitely on your side right now.
There are specific ways to turn your home into an asset.
First, you may bank on home equity. When you get your home fully paid off and you need money after you retire, you may try applying for reverse mortgage on it.
Paying off your home before you retire means you have to spend more or follow the biweekly method to accelerate payments.
Second, you can pay off your mortgage and put up your home for rent or for lease. You may consider purchasing another property. Doing this would get you to save enough for your retirement.
A third way of looking at your home as an investment, is that every dime you spend for paying off mortgage should not necessarily come from your retirement savings. In fact if you do some planning in advance and if your home appreciates in value, you could even sell your home in retirement, buy a new home at a lower price, and keep the difference as investment savings.
Your schedule is hectic and you have other bills that you need to pay every month so you would most likely find it hard to save. Settling your mortgage accounts before retirement and buying a cheaper property would produce savings that you can use when you retire.
This may not be the best financial strategy but is certainly one way of accumulating retirement savings.
Use the mortgage acceleration method. This is the best way to pay off your home before retirement.
With the mortgage acceleration program you can slash 13 years of your mortgage and save thousands without changing the lifestyle or refinancing your home. Imagine getting rid of the mortgage payment without spending more. Now that's a great investment in yourself and not to mention your home is fully paid off and you don't have to dip into retirement savings to pay for mortgage.
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