The market may be moving up but what if you were hoping to use the equity in your home to help fund your retirement. Should those folks hold on to their home a little longer?
Sorry for the delayed response. This is my first comment. Planning to use your equity to fund your retirement is a very common thing and should be calculated on a case by case basis. The real estate market is very safe investment, however, as the value of your home goes up, so does the value of everyone elses (in your local market) and so does inflation. If it is your primary residence, then you need to find out if there other investments available that could cover your interest on a refinance aswell as put money in your pocket to battle inflation. It may be wise to invest in an income stream (cash flow).
My investment goals are to own multiple income producing properties and retire on the income stream they provide, rather than the equity from my personal residence. And at the end, having someone pay off a mortgage on a property that may be worth double in ten to fifteen years from now is a very attractive option for retirement. This is my personal view on the matter anyways and should be taken strictly as my personal view.
The market may be moving up but what if you were hoping to use the equity in your home to help fund your retirement. Should those folks hold on to their home a little longer?
ReplyDeleteSorry for the delayed response. This is my first comment. Planning to use your equity to fund your retirement is a very common thing and should be calculated on a case by case basis. The real estate market is very safe investment, however, as the value of your home goes up, so does the value of everyone elses (in your local market) and so does inflation. If it is your primary residence, then you need to find out if there other investments available that could cover your interest on a refinance aswell as put money in your pocket to battle inflation. It may be wise to invest in an income stream (cash flow).
ReplyDeleteMy investment goals are to own multiple income producing properties and retire on the income stream they provide, rather than the equity from my personal residence. And at the end, having someone pay off a mortgage on a property that may be worth double in ten to fifteen years from now is a very attractive option for retirement.
This is my personal view on the matter anyways and should be taken strictly as my personal view.