Tag Archives: equity

What Is Equity?

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What Is Equity?

Equity is the value YOU own in property such as a house. It’s the difference between what’s OWED and what the property is WORTH in the current market.

The example this video shows – you have a house worth $300,000 today and you owe the bank $200,000.  Your equity would be $100,000.

If the house is valued at $500,000 in five years, and you still owe $150,000 your equity will be $350,000.

Equity grows if the property value goes up or if the amount owed goes down.  The key thing to remember, simple as it sounds, is that you “own” increases in value. The bank’s loan doesn’t go up if the home’s value goes up.

Increasing the value of your home is possible through “sweat equity” — work you do yourself on the home, including improvements to the inside and outside.

Equity in a home can be used as collateral for loans but a house is not a piggy bank. In other words, allow your home to build wealth for you, but don’t use it to live beyond your income means.

Home equity can become a key financial asset over time; treat it wisely.

At First Title & Abstract, Inc. we are the FIRST choice among title companies in Naples, FL and Marco Island, FL.

No other Naples FL title company can offer the reliability, experience, and friendly service.

We believe in “Putting You FIRST!”

Rent or Own?

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Rent or own?

What makes the most sense in the current market?

Well, much depends upon your tax bracket, whether you intend to move in the near future, the local real estate market, and what your future goals may be.

Other considerations must be included.

One advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity and take advantage of tax benefits and also cannot protect yourself against rent increases.

Also, you may be at the mercy of the landlord for the condition of your housing.

Owning a home has many benefits. When you make a mortgage payment, you are building equity increasing YOUR net worth. Also, owning a home qualifies you for certain tax breaks which gives you more available spending money to handle the costs of homeownership.

Each individual is different, depending upon preferences and goals, but generally, Americans prefer the stability and security of owning their own home.

At First Title & Abstract, Inc. our staff on Marco Island and in Naples can assist you in reviewing the decision whether to rent or own.

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It’s not child’s play deciding whether to rent or own your castle … let us help!

Just call us anytime and set up an appointment with one of our friendly staff members.

We’re here to help!