What is Instant Equity & How to Achieve It?
By HiLine Hal
Your home will probably be the biggest investment of your lifetime. Building a new home on your land means you are developing your home to meet your lifestyle. But not all new construction home building is equal. Deciding to build a new home offers the opportunity to create instant equity if you start with partnering with the right home builder. The potential for more equity you start with at the beginning provides greater financial options long term.
What is Home Equity?
Equity is defined as the difference between what your home is worth and what you owe on it. As you pay down your mortgage, the amount of equity you have in your home will increase. Many homeowners try to build equity in their homes simply by waiting for their home to grow in value as the market appreciates and as they pay it down year over year.
Why is Home Equity Important?
Home equity may be viewed as a long-term strategy to create a stable financial position. Unlike many purchases, like a vehicle, a home is a long-lasting, sound investment.
When renting, the money paid for your home goes to your landlord rather than increasing your financial nest egg. By buying and investing in the right home and property, you will have an asset to bring you personal satisfaction and financial opportunities. Additionally, building a home means you have the flexibility to pick a floor plan to fit your lifestyle and decorate your personal space without asking the landlord’s permission.
What Can Be Done with Home Equity?
Did you know that you may be able to tap into your home equity without selling the home of your dreams? The reason why someone may want to obtain the equity from their home is vast, anywhere from consolidating debt, starting a business, or investing in a second home. You may decide to reinvest the money into the home or property improvements.
How to Create Home Equity
Home equity may be viewed as a long-term investment. You may see your home equity similar to a savings account, and over the years, you can have the joy of watching it grow. Home equity can rise quickly in a hot market. However, equity typically happens by home improvements or making regular payments over an extended time. For example, if you have an existing older home selecting some key renovations can make your home more appealing to buyers and increase its value. But if you are looking to build a home, the best way to boost your equity is starting with a building program designed to be high-quality & affordable.
What is Instant Equity?
Home equity is an important piece of your financial wealth, so it’s valuable to understand how it works. Home equity is the difference between the fair market value of your home minus any mortgages you owe.
With an existing or turn-key home, the homeowner either purchases a home for market value or possibly secures a house by spending more than it is worth. Thereby, it may take years for the homeowner to attain equity in their home.
Alternatively, the advantages of starting with a home built for your family and utilizing a home builder who focuses on affordability means you’ll feel the satisfaction of home equity sooner. Let’s say you invest $400,000 into your home building project, but the appraisal comes in at $475,000 when you are ready to move in means you have attained $75,000 of instant equity.
Please keep in mind instant equity is never guaranteed as it is dependent on each situation and regional home values. HiLine Homes developed a building program to be affordable and with homeowner involvement so that the opportunity for instant equity increases. Learn more by connecting with a Home Consultant in your region.
How Does HiLine Homes Help Build Instant Equity?
HiLine Homes’ building program is a unique solution for new construction, and it starts with keeping overall costs down. Our purchasing department resources high-quality materials and maintains partnerships with our valued trade partners. This unique system allows a streamlined process that affects the affordability of your home and the efficiency in which it is built.
Choose your level of involvement! In our most popular traditional building program, the homeowner is responsible for such tasks as finding and developing the property, site cleanup, and painting. Whether you select to be more hands-on or hire someone else to do those and other tasks, you have the unique opportunity to build instant equity.
Taking Advantage of 100% Financing
Historically, the opportunity to build a new home required putting money down and locating a lender willing to do construction financing. HiLine Homes has taken steps to find qualified and competitive lenders who provide construction loan packages, many of them offering 100% financing packages. Yes, rather than putting 20% or more down, it is often a better idea to take advantage of 100% financing. Contact an approved lender and find out more about the 100% financing packages that they offer.
The HiLine Homes Experience
Building a new home isn’t out of reach. HiLine Homes has successfully assisted thousands of families in attaining the dream of homeownership while building instant equity. Our unique “on your lot” construction process provides a streamlined process that increases the affordability & efficiency of building your dream home.
Don’t know where to start? No worries. We have designed our building program to support you. HiLine Home Consultants can assist whether you want to build on your existing land or need help finding the right property. Connect with a Home Consultant in your area to develop your journey to building the dream home to meet your lifestyle.
