Do you have at least 20% home equity? Then a HELOC, or home equity loan, may be just the financial tool you need to improve the value of your home and finance other endeavors. Luckily, there are several different ways you can use your home equity as a financial tool.
Use Your Home Equity: Urgent Repairs
Everyone experiences “rainy days,” and it is important to keep your home well-maintained so that further damage doesn’t occur in the future. A home equity loan, or HELOC, is great to use for these unexpected and emergency repairs. In fact, a home equity loan remains tax-deductible as long as you’re using money from the loan to finance needed repairs that improve your home’s value. In the end, it can be a win-win situation—an extra boost of help for you that both makes repairs cheaper in the end and enhances the value of your home.
Since using a home equity loan or HELOC offers you a tax-deductible opportunity to improve the value of your home, you may want to consider using a HELOC for renovations and additions to your home.
An option that may be a better is a more energy-efficient roof. Fortunately, there are all kinds of roof types for different budgets. If you want to play it safe and install a cheaper but durable roof, asphalt shingles are the right option for you. However, the value of your home will increase with a roof that reflects heat away from the home. Since new roofs can be expensive, consider using a home equity loan to supplement the expenses.
Use Your Home Equity: Debt or Large Purchases
While you should never jump into a loan without careful consideration, a HELOC may be a useful method to collect some extra funds for paying off mounting debts or financing an expensive purchase, like a car. A home equity loan can be a useful tool given its flexible nature, adjustable rates, and relatively lower interest. However, there are always circumstances where banks may change the interest rate for a HELOC. So, before you put money down on that new truck, make sure you talk to your bank representative ahead of time as well as have a solid plan for how you will pay the loan back.
If you’re wanting to round up a bit of extra cash for an expensive purchase or home remodeling, then a HELOC may be the right choice for you. However, be sure to do adequate research and planning before taking out a home equity loan so that you don’t run into any unexpected, financial issues.
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The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education, and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agents, brokers, investors, hedge fund managers, rehabbers, wholesalers, and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that it does not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
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