Why Millennials Should Invest in a Home Now!

Owning a home is perhaps one of the smartest long-term investments towards one’s future an individual can make. Home equity can provide a good amount of security for when someone is older and can even be an emergency source of cash, such as when you apply for a HELOC. No wonder millennials compromised 35% of home buyers in 2015 according to the National Association of Realtors. If you’re a millennial who’s still on the fence about purchasing a home, below are our top reasons why you should go for it now!

Do it for the Tax Breaks

Do you know that the interest you pay on a home you own is tax deductible each year? This means that you’ll get the most tax breaks in the early days of you paying off your home because the majority of those payments are interest. Can we hear a yay for tax breaks when you need it the most?

Invest in a Home to Build Equity Now

The earlier you buy a home, the more equity you build because the sooner you can start paying your home’s principal balance, the faster you’re able to own a fully-paid home.

This is good because you can use your home equity to fund various needs in the future by applying for a home equity loan. The funds from this home loan can be used to fix your credit through debt consolidation, to finance another investment, or to pay for huge expenses such as a dream wedding or college education.

Be sure that you don’t end up using your home equity for frivolous things! Any loan taken against your equity means putting your home on the line.

Interest Rates Are Still Low These Days

Mortgage loans have incredibly low interest rates these days, making it even more attractive to get a mortgage loan to finance a home. Mortgage interest rates are at around 3% or even less. Think of how much you’ll save as compared to when rates climb to as little as 5%. You’ll be saving tens of thousands of dollars!

Think of it as an Investment

The odds that your home’s value will be markedly higher a few years down the road is far greater than the opposite scenario, so it just makes sense to buy now that market conditions are very favourable towards buyers.

A market crash isn’t likely to happen anytime soon so you’ll still end up making bank should you decide to sell before a rumored crash. There’s not that much to lose and a lot to gain especially if you’ll compare owning a home to paying monthly rent that’s just like placing your money into someone else’s pockets.

Ready to seek expert help in buying your first home or perhaps considering getting another one as an investment? We can help! Talk to us today! There are a lot of financing options that we can assist you with to make owning a home closer to your reach.


4 Genius Ways to Use a Home-Equity Loan

Owning a home comes with the benefit of being able to build wealth through home equity. The good thing with having a good amount of home equity is that you can tap your equity when you need funds or need extra cash. However, you must be careful that you don’t end up using it for frivolous things. Here are 4 Genius Ways to Use a Home-Equity Loan so that you’ll use yours the smart way!

Use Your Home Equity Loan to Invest

Home equity loans usually have a low interest rate, which would be at around 5%. If you take out some money from your home equity loan and use it for investments that yield a return of more than that, then you’d be making quite a considerable amount of money.

The problem with using your home equity loan to invest is that losses could be great if you don’t know what you’re doing. However, if you research and think through investments before picking one, the returns can be very rewarding. The key is in not putting all your eggs in one basket. Diversify!

Pay for a Child’s Advanced Education with Home Equity Loan

Whether you’ll use your loan to fund a child’s college education or post graduate studies, it will be a smart move because higher educational attainment typically means better work and income opportunities in the future.

A word of caution, though. Make sure that you save enough for your retirement and don’t bank on your child’s education taking care of your needs when you’re older. You can also save your home equity and tap it later as extra retirement fund.

Use Your Home Equity Loan to Pay High-Interest Debts

Debt consolidation is perhaps the smartest way to use a home equity loan if you want a low risk option. You can’t lose when you use your home equity loan to pay off car debts or credit card debts because no matter how you look at it, you will be saving money in the long run if you consolidated a considerable amount of loan, to begin with.

The key to make the most out of this is to ensure that you only agree on terms that you can honor. This is important because you can lose your home if you fail to make agreed payments. Remember too that this will usually give you the most benefit if you’ve garnered a lot of high-interest debts because you’ll have to ensure that the benefits should outweigh the risks.

Finance a Major Home Improvement with a Home Equity Loan

Carefully planned home improvement can increase the value of your home and build you more equity. The best returns are usually a result of a kitchen makeover, the addition of a bathroom, or the renovation of the master suite. Some home improvement will work better if you’re planning on a renovation to help sell your home. You can discuss this with your mortgage broker so you can choose the best way to go forward for you.

Thinking of applying for a way to tap your home equity? Contact us today so that we can discuss the best ways that will fit with your needs!