Is There Such a Thing as Instant Home Equity?
Building equity in a piece of property can be simply accomplished through keeping up with mortgage payments and waiting for the rising tide of the market to lift your property value along with all the others. It can also be accomplished through investing time, money, and energy into property and home improvements. Here are ten ways to find or create more equity in your home.
1 – Landscaping
The fastest and easiest way to improve the equity you have in your home is through upgrading the landscaping of your grounds. Quality landscaping improves curb appeal and can help you gain several thousand dollars worth of equity when it comes time to have your home reappraised.
2 – Curb Appeal Projects
Believe it or not, but replacing your front door or garage door, improving the look of your home’s entryway from the exterior, fixing up your porch, and other such curb appeal projects are a quick and easy way to increase the value of your home, and therefore your equity.
3 – Lower Cost Permanent Improvements to the Grounds
Another way to quickly and (relatively) easily increase the equity you have in your home is to improve your property through lower-cost permanent improvements like adding a stone patio, walkways, masonry retaining walls, decks, and the like.
4 – Other Lower Cost Improvements to Your Home
Unlike larger home improvement projects like kitchen and bathroom remodels, replacing, upgrading, or adding features like attic insulation, new carpet, a new furnace, better appliances, and such, can dramatically improve your home’s worth with a modicum of investment.
5 – Maintaining What You Have
This one is more about not losing the equity you’re building. You don’t want to be paying down your principal if all the equity you’re gaining is being lost because you aren’t maintaining your home. Stay on top of home maintenance so that you’re protecting your investment while building its worth.
6 – Paying More
One great way to build your home’s equity is to make larger mortgage payments than required, paying down more of your principal every month.
7 – Paying More Often
You can also make additional, unscheduled payments that will go directly to your principal, building your equity while shortening the term of your mortgage.
8 – Refinancing to a Shorter Term
Speaking of which, you might also consider refinancing your home with a shorter-term mortgage, reducing the amount of interest you have to pay while paying down the principal faster, and building equity faster.
9 – Windfalling
Any time you come into unexpected money – through a bonus at work, an inheritance, or whatever – put that money into your home as instant equity.
10 – Resist the Urge
The equity you already have in your home, and the equity that you are building, can be a major temptation. So, like your grandparents may have told you, if you want to have that money, then don’t spend it. Resist the urge to treat your home’s equity like a rainy day fund that you can dip into whenever you want or need something.
Treating Your Home Like an Investment
Building equity is simple; it can be done quickly and easily with discipline and a little effort or investment. The results are worth the work, time, and money, and home equity can be had quickly in this manner.