It’s one of the biggest investments you’ll ever make, so you want to get the biggest return. If you believe that growing your home’s equity is in your plans to help finance your kid’s education, home remodeling or part of your retirement plan, here are a few suggestions we’ve got to boost your home’s investment value.
The first – which may seem counter-intuitive – is making a large initial down payment. When it comes to building equity quickly, the percentage of your home you pay off will substantially increase your ownership. That ownership represents equity. Down payments below 21% are subject to mortgage insurance; 21% and over means you can defer this insurance, saving you money and justifying this route – should you decide this is the most advantageous to you.
Next is prioritizing the payment of your mortgage. Your home equity is equal to both your down payment and the money you put towards your mortgage. So improving your equity can be as simple as honouring your monthly payments! Little by little, that equity that will rise.
Our final point to raise your equity is to renovate the inside and outside of your home. Improvements to the interior and exterior will help raise your property’s value – and they don’t even need to be expensive projects. Remodelling rooms in your home efficiently like repainting the kitchen walls or sprucing up your front yard can have a profound effect on elevating your equity.
Remember, results won’t arrive immediately and patience is a valuable virtue while you’re building capital in your home. Time however has the potential to deliver the results you’re looking for. Good luck!