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Hawaii Real Estate – Paying For Paradise
Where does one even begin to start when discussing the island paradise of Hawaii. Perhaps with an inflated Hawaii real estate market for those considering relocating.
Hawaii
Formed by volcanoes, Hawaii is a collection of islands that feel like...
Industrial Income Property Financing: Part 3 Of 3
Welcome to the third and final segment of a three-part series about income property. In this segment we will be discussing financing options for industrial income properties as well as the upside (and downside) of owning this type of property.
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Mortgage Tips From Me To You
At some point in your adult life, you are likely to purchase a house of your own. Whether you are sick of renting, or you have decided to settle down and start a family, purchasing your first home can be an exhilarating and nerve-wracking adventure....
Using A Real Estate Agent To Find Your Home
Having trouble trying to decide which home to buy in a particular area? Most people do - if you’re moving into an area and haven’t lived there before, you simply won’t be familiar with much in the way of where you should go. The solution: retain a...
What Do You Need To Know About Real Estate
An estate agent is one who is involved in the sale of houses and land. The job of estate agent is not new. But with a rise in population, the task of estate agent has gained momentum. With increasing number of people there are more houses and lands...
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Wealth Building – An Advantage Of Home Ownership
As you grow older, the issue of wealth building comes front and center. Wealth building simply refers to increasing the net value of your total assets. Wealth building over time is one of the advantages of home ownership.
Building Equity
Owning a home can help you build wealth in two ways. First, you build equity by paying down your mortgage. A certain percentage of each mortgage payment goes towards a reduction in the total amount owed. Typically, payments in the first few years of the mortgage are primarily applied to interest on the loans. As time passes, however, more and more of each payment is applied to the outstanding loan amount. Before you know it, the $300,000 loan is down to $50,000 and you’ve gained $250,000 in wealth.
Appreciation is the second wealth building advantage to home ownership. Each year, the value of your home will increase or decrease slightly based on market prices. Over time, real estate has always appreciated in value. In the current market, homes in some parts of the country are appreciating at rates as high as fifteen to twenty percent! Appreciation is a very popular subject with homeowners.
Wealth Building Example
Let’s look at a simple demonstration of how advantageous home ownership can be. Assume you buy a home in 2005 for $400,000 and, for the purpose of simply
mathematics, pay no down. Over the next 10 years, your mortgage payments reduce the outstanding mortgage by $100,000 and the home increases in value to $600,000. The value of your home as a net asset has grown to $300,000 [$600,000 minus $300,000]! If you had rented during this period, you would have missed out on $300,000 in wealth. This simple example should show you the advantage of home ownership.
Historically, home ownership is one the best ways for families to build wealth. If you don’t currently own a home, you should start looking for one.
About the Author: Raynor James is with http://www.fsboamerica.org - providing FSBO homes for sale by owner. Visit our "sell my home" page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.
Source: www.isnare.com
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