Noah the Upsizer
Recently had the “no more kids” kid. This soccer coach turned stay-at-home dad really has his hands full. (and the house is full too, if you hadn’t already guessed). His wife convinced him into using a bridge loan to pull out their home’s equity and buy a bigger house. 1,200sqft to 3,000. Nice. Now that’s a real estate thrive.
Your Real Estate Thrive = Upsizing
When we talk about thriving in real estate, what we’re really talking about is…the equity you’ve accrued in the property you own.
What is property equity?
Home equity is like a savings account, but it's your house that's doing the saving.
You can accrue equity in one of two ways:
1️⃣ You make mortgage payments, chipping away at what you owe.
2️⃣ Your home appreciates in value. South Jersey real estate is a bit of a rockstar these days, so you can expect a great amount of appreciation.
Using Your Equity To Upsize
There’s a reason why agents preach so hard at “getting on the property ladder”. Because the equity you accrue in your first property can help you jump into a much bigger house when you need it. Some options you have are:
Making use of a bridge loan or HELOC...
...so you can seamlessly move into your next home before you even start selling the current.
Using all of your equity to put down a huge downpayment
(meaning you gain a much bigger home at the same monthly mortgage payment, or for even less!)
Or even splitting your equity between a downpayment on a larger house...
...and using leftover equity to buy an investment property so you’re gaining equity on two properties.
