HOW THE RICH USE THEIR HOME EQUITY TO BUILD LONG-TERM WEALTH
One of the secrets of the rich is that they habitually look for ways to increase good debt and eliminate bad debt. Good debt is used to make an investment that appreciates in value and puts cash in your pocket, while bad debt is used to buy a “doodad” that depreciates. Your mortgage is an example of good debt because it helped you purchase a house that will rise in value over the long term. Now, why not consider using the equity you’ve built up in your home to create even more value?
For example, refinancing your mortgage to invest in revenue property can provide a variety of unique wealth building advantages. Here are just a few:
- Leveraging Your Investment: You can purchase a rental property with little to no money down and let the bank fund the rest. For a relatively small initial investment, you can realize big returns in capital appreciation and monthly revenue.
- A Balanced Investment Portfolio: by investing in real estate along with your existing stocks, mutual funds, bonds etc. You’ll have a stronger, more stable portfolio. That means more peace of mind and security for your financial future.
- Tax Deductions: Your mortgage interest, property taxes, repairs and maintenance can be deducted from your taxes.
- Tax Deferral: The appreciation in property value is sheltered from tax until you sell the property, so you can minimize taxes by, for instance, waiting until you retire before you sell.
- Ongoing Cash Flow: Not only will your rental payments help pay down your mortgage, in time they’ll provide a reliable income for retirement.
Wondering how to buy a revenue property with little or no money down…even with less than perfect credit? Check us out online @ReferralMortgages.com or give us a call today at 613-686-6003 for a free home equity assessment. Together we’ll explore ways to turn your home into a wealth-building asset!