I explain what equity is and how you can take advantage of it.
Equity is a buzzword in real estate that gets thrown around a lot. I think many sellers and buyers aren’t aware of what equity is and how they can leverage it to their advantage, so today I’ll explain both concepts.
Equity is the difference between what you bought your home for and what it’s worth today. There are ways to leverage your equity. You could take out a home equity line of credit against that equity to purchase something else or pay off debt. If you’re in that position, I’d be more than happy to connect you with a lender who specializes in HELOCs. Another thing you can do is sell the home and use that equity to buy another home.
“There are ways to leverage your equity.”
If you’re going to try to capitalize on equity after less than one or two years, be aware of capital gains tax. If you sell the house after less than one year, you’ll pay short-term capital gains, and if you sell it after less than two years, you’ll pay long-term capital gains. Consult with your tax advisor to learn more about capital gains and how much you’ll have to pay.
If you have any questions, please don’t hesitate to contact me by phone or email. I look forward to hearing from you.
