A simple and safe way to profit on your home
Published Wed, Jan 23, 2013 Updated Tue, Feb 16, 2021
Many people take great pride in buying a house, and over the years making small improvements and embellishments to make it more comfortable. This could include some additions such as an extension or perhaps finding the room to plant a nice garden in the back. Especially in today’s hectic world, to be able to come home to a comfortable and tranquil place is one of the true joys of modern life. People often invest so much time, passion and energy into their home that they don’t really feel like ever selling it and moving.
Most people know that the best time to buy a home is as soon as possible. It might be just after they’ve graduated and started working. If they are fortunate, the money that they need for the down payment may have been saved up over many years of doing part-time jobs. Perhaps they have a wealthy relative that lent them the money, or parents that will make it part of a graduation present or maybe a future wedding present. However you manage you finances the best thing to do is to buy a home as soon as you can.
Buy as early as you can
There are three fundamental reasons why buying a home as early as possible makes excellent economic sense:
- Home values hardly ever go down. Granted, nothing rises at a rapid pace forever, and the property market will always have some ups and downs. If you can buy a home during a down market, even better. You will have the comfort of knowing that you probably made the best deal they can, and that your property will continue to rise in value.
- As you continue to pay the mortgage on a home, you are slowly building equity. After just one or two decades, you could find yourself with a significant portion of your monthly payments reflected in equity in your home.
- Because home values rise over time, any increase in value over the original purchase price can automatically be considered equity on the part of the homeowner. Over a lifetime of paying a mortgage, you can find that your home is worth 2 to 3 times what you originally paid for it, and sometimes even more.
The question on many people’s mind is: “how can I benefit from all the equity that has built up in my home?” In England, if you are over 55 years old, you have the right to participate in a variety of programs that allow you to actually take out a loan against a portion of their equity.
These are important decisions; you should always work with a specialist, one who can make sure that they make smart decisions, making sure that one is aware of all the options available. Additionally, any decisions that are made will have been carefully reviewed and discussed to make sure that there will be no future negative consequences.