Creating Passive income
Know the power of your home equity:
Do you really know the power of your home equity ?
Would you like to create additional monthly cash flow?
Would you like to know how the interest on your mortgage could be tax deductible?
Would you like to learn about a recession-proof strategy in real estate investment?
Read on to find out …
You bought your home a few years ago, you’ve paid your mortgage in a timely manner, and hopefully your house has appreciated an average of five percent each year. Great work! Now is the time for your house to start paying you back. Basically, you’ve built an equity which is now available for you to cash out. Simply, your equity is the asset value of your house, minus the outstanding debt (mortgage). This is a large amount of cash that is sitting idle and has no appreciation. However, if the equity in your home isn’t helping it to appreciate in value, then what is your equity actually doing? The answer is: nothing! The rate of return on the equity in your home is zero if you continue doing what you have done so far. Now the question is, can you really afford to let your money sit by idly when you could be making that money work for you?
You may have concerns about the cost of borrowing a HELOC (Home Equity Line of credit). But what if I tell you that there are many options out there, which not only cover all your cost, but also generate a cash flow and capital gain!
That’s right; you can leverage your equity for investments and subsequently, earn money. The good news is that in this situation, the interest you are paying on the cost of borrowing is tax deductible, as the funds are borrowed for investment purposes*. Isn’t it amazing?
Just bear with me, you will find out how shortly!
Your home equity is a wonderful asset that you can leverage, in order to achieve one or some of the following:
1- Pay off or consolidate your debt, credit cards, unsecured line of credit, car loan, etc.
2- Capitalize it in your existing business or start up a new one
3- Best of all to Invest it in different types of investment vehicles, i.e. Mutual funds , Stock market, or Alternative Investment
If undertaken and managed properly, the first two are justifiable options; just ask your local licensed agent how! The first option will certainly bring you peace of mind, better debt management and better monthly cash flow, meaning saving thousands of dollars. The second option will help you to develop or boost your existing business, or help to start up the business idea you have always dreamed about – again, this means saving or earning thousands of dollars. However, that debt and interest is not tax deductible, and more importantly, that debt will still count towards your debt ratio (remains on your credit bureau report)
Now let’s take a look at the third option, investment: