Soaring market values have spelled huge returns for those lucky enough to cash in on BC’s red hot real estate market. Over the past two years, as housing demands continue to reach all-time highs, the housing market has proved to be certified pandemic proof.
Those increased market values — in tandem with all that hard work that goes into paying off your mortgage — means you likely have some equity built into your home. Using that equity wisely, there are loads of unexpected ways you can continue to invest in yourself, your home, and your financial future. Below are some ideas to get you thinking.
Renovate your space
If you’ve been fantasizing about glossy, new hardwood flooring for the living room or a colourful backsplash for the kitchen, tapping into your home’s equity might be the answer. Renovations are a big expense that can be difficult to save up for, but they can also raise the value of your home which means using equity is likely to pay off in the long run.
Freedom Capital offers second mortgages that can allow you to borrow on behalf of the worth of your estate. In short, it means you can use the accumulated value of your home to finance your goals and projects without even having to sell it.
Open a business
Using the equity available in your home, or by taking out a second mortgage, you can also invest in yourself by becoming an entrepreneur and launching your own business. Equity funds can be used to buy equipment, lease a space, or offset any overhead costs.
Alternately, those funds can also be used to invest in a business you believe in and think will provide a return down the line.
Pay off debt
You might also be surprised to learn that you can use your home’s equity to pay off your pesky credit cards — or even your student loans. By combining all of your credit card payments into one lower interest payment, you can improve your cash flow and boost your credit score all in one.
Invest in rental property
Rental properties are among the best investments you can make because the cost of your mortgage will be offset by your tenants while the value of the property continues to climb. It’s also a great way to diversify your existing investments.
Though rental properties often come with the added responsibilities of having to manage a property and the tenants who live there, it’s possible to buy your next investment home solely using the equity in your current one.
Buy a vacation home
Your dream vacation home may still be far-off, but it’s something you can strive towards. Whether it’s a cottage or a place where you can quietly retire someday, over time, as you pay off your mortgage, you’ll have more and more equity to tap into for future property investments.
To get a step closer to your next investment, you can go through Freedom Capital’s quick process application at freedomcapital.com/apply-now.