Increasing Your Net Worth

Purchasing a home is a long-term investment that will increase your net worth. One of the benefits of a home is the high cash return a real estate investment can provide.

 

Money invested in house payments and money earned from appreciation combine to create equity. Simply defined, equity is the difference between what you owe on your home and your home’s current market value. As you build equity, you increase your net worth.

Appreciation of Your Investment

No one can make any guarantees, but over time most real estate increases in value. If you are careful about your selection, and you treat the home kindly, it will likely be worth considerably more in five years than it was the day you bought it. Your initial investment may be as little as 3% (or less) of the home's sales price, but you are the one who benefits from appreciation of the property.

The Power of Equity

If you ever need a ready source of cash, your home’s equity may be where to find it. With a home equity loan or line of credit, you can borrow against the equity in your home for home improvements, debt consolidation or just about anything else. Best of all, the interest on most home equity loans is tax deductible. Consult your tax advisor for details.

 

To find out more about OECU’s Home Equity solutions, click here or call 1.877.648.OECU.