Ready to buy your first new custom Florida home but unsure if the significant cost will pay off down the road?
Totally valid question. The answer? A resounding yes.
Owning a new custom Florida home allows you build equity in what, for most of us, is our largest fixed asset. Both the land the home occupies and the home appreciate in value over time, making that purchase worth more the longer we own it.
Still squeamish about taking that big leap into homeownership? Here’s why building equity is a big deal.
You build wealth
If we boil down the concept, building equity means building financial wealth over time.
It’s satisfying (not to mention comforting) to know buying a new custom Florida home WILL pay off — literally — down the road, after all the work, research and planning that goes into purchasing a new home, especially if you’re a first-time buyer.
And here’s how: since many of us buy our homes via mortgage, the more payments you make, the less you owe and the more of your home —thus equity — you own.
That doesn’t happen if you’re a renter. All those monthly rent payments go right in your landlord’s pockets, not yours, giving you no opportunity to build valuable equity.
You have a homegrown source for funds
Considered carefully, the equity you build over time in your new custom Florida home can be used as collateral for a home equity line of credit, or home equity loan.
Commonly known as HELOCs, these loans typically finance big-ticket projects such as installing a swimming pool, a new roof, or another project that requires significant cash.
Home equity loans can address many other projects and needs, but being a homeowner who’s building equity (and whose financial house is in order) gives you the opportunity to apply for these funds, and thus accomplish more goals.
This is something else that’s unavailable to renters.
You can buy your next home
When you’re ready for a change or that next life stage, selling your current home helps finance the purchase of your next home. This is true regardless of whether you’re still paying a mortgage on your current home, or have paid it off.
Either way, you won’t have to save for a down payment on your next home. Use some of the proceeds from the sale of your current home for the down payment on your next one (20 percent is the industry standard and helps you avoid the additional expense of private mortgage insurance)
If you’re in that sweet spot where you’ve paid off a mortgage, congratulations! The full proceeds from the sale of your current home can be yours.
If you’re still paying a mortgage, the equity you’ve built is a huge help. Use your sale proceeds to pay off your mortgage, then roll the reminder into your next home purchase.
Something else unavailable to renters!
Ready for your new custom Florida home? Talk to ICI Homes here.
Owning a new custom Florida home allows you build equity in what, for most of us, is our largest fixed asset. Both the land the home occupies and the home appreciate in value over time, making that purchase worth more the longer we own it.
