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BUYING OR SELLING PERSONAL REAL ESTATE
Licensed for real estate transactions in Minnesota and Wisconsin
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Your HOME is an INVESTMENT, and YOU get to LIVE IN IT!
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- You may already be enjoying the
investment you have made in your
own home. If so, you will agree that
even separate from the financial implications, home ownership is a
very positive component of your
quality of life.
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You may also know that your home ownership can be a great investment.
In case you do not own your own home or; haven't thought much about;
your home is a cornerstone of your personal investment.
Here are some happy thoughts...
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Your home equity can grow from both your payments on your mortgage and market appreciatiohn. Market appreciation varies from one market to another and is the result
of the economic forces acting on the home supply and demand in any specific location.
In recent years, many of us have seen home appreciation rates ranging from 10 to 20 plus percent. While nothing is assured in this regard, the average long-term trend in residential
home appreciation has definitely been positive,
This market appreciation coupled with borrowing part of the home purchase (your mortgage)
can result in rapid equity growth and a very attractive return on your home investment!
Here is an Example:
Home Purchase Price = $200,000
Down-payment = $ 40,000
Original Mortgage = $160,000 |
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- Using an annual market appreciation of Four percent and our home value of $200,000 shows annual market appreciation of$ 8,000. (200,000 x .04 =8,000) When we consider that we gained this $8000 with an investment of $40,000; that shows a 20 Per-Cent annual return (8.000divided by 40,000 = .20) You may want to use your own set of numbers. Calculating the annual return on your home investment may be a wonderful surprise!The above example is a simplified pre-tax look at the return on a home investment. Getting an after-tax look at a home or other real estate investment is a bit more complex. Still very understandable. and can be provided by investment, real estate or tax professionals, or me.
- The nextPositive Step could be to use your growing home equity as part of your investment strategy. An interest deductible home equity loan can give you access to this tax-free source
of additional investment capital.
You may want to consider using your growing home equity to make
further personal investments in whichever investment vehicle you
may prefer. Call me any time.
Scott Bertas, 1/7/04
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CRS - Certified Residential Specialist
Value of Using a CRS
- The Certified Residential Specialist (CRS) is the highest Designation awarded to sales associates in the residential sales field. The CRS Designation recognizes professional accomplishments in both experience and education.
- Since 1977 the Council of Residential Specialists has been conferring the CRS Designation on agents who meet its stringent requirements. Currently, there
are more than 34,000 active CRS Designees.
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