Meet Axel and Annie. Seven years ago they were interested in building wealth with real estate. They bought their first home in Greensboro, NC for $125,000 on a minimum-down FHA loan. Four years ago, they rented that house and bought a new place for $195,000. Today they are looking at an even nicer house for $225,000.
By building wealth with real estate, they now have about $104,000 in equity in the two properties. They have achieved that in 7 years with about a $12,000 investment in down payments and closing expenses for the two houses. When they buy the new home, they're going to, once again, keep the old one and rent it out.
And this couple is in their early 30s! Can you see how, over the next 30 years, they could become at least comfortable if not wealthy by building wealth with real estate?
Their story is not unusual: there are dozens of Axels and Annies who have figured out that building wealth with real estate is their best investment. For generations it has been the principal way in which American families build financial stability and independence. Carefully orchestrated, it can be a wealth building tool, but the key is to get started! Whether you are in your 20s, your 30s, or even your 40s, it is important to develop a vision for your real estate future and then create a plan to achieve it: a Real Estate Plan.
At GreatNest, one of the most gratifying things we do is help families secure their financial futures through real estate. It is something we are very good at and we'd welcome the opportunity to help you, too. The process starts with a consultation - more of a conversation, really - where we talk about your goals, your financial situation, and your future. There's no cost or obligation and at very least you'll leave with much more information than you have now.
Like Axel and Annie, you may find that your house can be more than a great home. It can be the best piggy bank you've ever imagined!
You may want to learn about homes for sale or view current listings for sale in the MLS. If so, please click here and we'll take you to our MLS search tool.
(Axel and Annie are composites of a dozen young couples we've helped through the years. Their story is typical and is based on a prevailing interest rate of about 4.5% and average annual housing appreciation of 3.5%. Housing does increase in value over time and mortgages do get paid down, creating equity. Call us today and let's get started building wealth with real estate for you!)