Most homeowners paying a mortgage can only dream of a day when they become mortgage free. So if you are thinking of ways to become mortgage free quicker and building financial wealth through property think about building equity.
Having more equity in a house means that when you are ready to sell, you will own more of the property and consequently get more cash in hand. It also means that you can potentially borrow against that equity for other projects.
There are a few ways to be aware of when it comes to building equity in your house – here is what you need to know.
Know current facts
First step to any good plan is knowing where you are – how much equity you have in your property currently, how many years of mortgage repayments, etc. This will give you the opportunity to make informed decision for any future plans.
Don’t wait to buy property. Buy property and wait
This popular quote carries wisdom with it. In general, it is wait to purchase property and wait for its value to naturally increase long term. Although this tactic might not work short term, if this is a home you decide to settle in, buy for the long term growth potential and you will see your equity naturally increase over years.
Add occasional repayments
If you are committed to building equity in your home, use any occasional bonuses or gifts to make an extra payment on your mortgage, rather than use it to take an expensive holiday. Your lender or mortgage advisor will be able to advise on conditions for paying lump sums on your mortgage so you will have all the facts.
Don’t move, improve
For many, home improvement is a way of adding equity to a home. For instance, adding a bathroom, converting a loft, creating a bigger kitchen or a conservatory can add value to your home and increase your equity. If you are taking the home improvement path, make sure you balance your investments with the final gain in equity you might achieve. We are happy to offer our professional advice on how much your home might be worth following home improvements so you make the best possible decision for your circumstances.
Vanilla Square – highly personal sales and lettings! Whether selling or letting property, you will always be liaising with one of our business partners, which makes our service that much more responsible and approachable. When you instruct us, your property will reach a wider audience as we are one of the few agents who are present on all the major property portals to offer sellers and landlords maximum exposure. If you’re looking to buy, sell, rent or lease your property, or you’re simply considering the idea, contact us by calling 0141 229 0210 or pop into our new office at 711 Great Western Road. One of our partners will be delighted to help and provide you with impartial, expert advice.