How to Build Equity in Real Estate Investment

Written by Posted On Tuesday, 08 December 2015 02:48

Current market trends suggest that this would be a great time to focus on real estate investments for its low interest rates, strong property markets, and huge price appreciation. All these factors can help you to build equity by investing in property market of the United States. According to the top realtors and economists, some cities have emerged as desirable real estate destinations. Miami, Austin, Dallas, Houston, Atlanta can help you to make big money by building equity.

 When it comes to Miami, apartments or condos for sale in Miami FL offer great return for investors. It comes in top three markets of Florida, boosting an impressive 18.6% return for them. Not only for investors but also home buyers can have a great chance to make big money by applying these smart ways of building equity in the States.

 Appreciation Value: Top property market in U.S. shows 6% appreciation in home values on an average. This offers a golden chance to homeowners and investors to build up equity. Bay Harbor Island apartments and condos for sale in Brickell Miami are potential property places which help you to accumulate big wealth and thereby equity.

 Prefer undervalued markets: Undervalued markets are a good source to accelerate equity. To achieve this, you should search for markets that are poised for stronger economic growth. Experts say that markets that are in good position than the national average, have potential to give you above-average equity growth.

 Purchase a home at discounted rates: This is another great way to build equity. There are many ways you can buy property at discounted rates. REO properties are a great means to generate equity which can be bought at discounted rates.

 Repairing the property: Updating outdated property gives you better returns and very soon covers the cost you paid for repairing and maintaining the property. This type of investment can go a long way and add equity in your portfolio.

 Debt Reduction: Tenants give you a monthly cash-flow which you use in paying mortgage per month. The interest part of the payment removes tax and the principal part of the payment decreases the total mortgage debt.

 Short-term mortgage: Experts say that short-term loans are available at lower interest payments. This will decrease entire borrowing cost and contribute for principal reduction. This will result in building quicker equity.

 Obtain more equity by buying another property: If your property creates a large amount of equity, then you can make investment in another one. Your tenants will pay your mortgage and thereby you build equity. Hence, this will allow you to make strong equity portfolio.

 1031 Exchanges: You should ensure that equity should not be hampered during unstable market conditions. When market is strong for sellers, then they should sell previous one and buy new one in the emerging market. 1031 tax-deferred exchange is a great tool that allows you to maintain the current equity and make a stronger stand in market.

 

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Interealty Exchange

Interealty Exchange are realtors of Miami who offer reliable and worthy homes, apartments and condos for sale as well as rent. Contact them for genuine advice on buying and selling your homes in Miami.

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