Since the COVID-19 pandemic began, there have been rising home prices. According to Fannie Mae, they’ll continue to climb by 11.2% this year and expand at a more modest rate in 2023.
So what exactly do these rising home prices mean for you as a property owner and your estate?
When home values go up, so do property taxes. While it’s possible to appeal a property tax increase, it can be challenging to convince the tax assessor. To successfully reduce your property tax bill, you’ll need to compile home sales data of comparable houses in your neighborhood at lower price points. Since home price increases are so prevalent, you should consider preparing for and budgeting for any property tax increase that may come your way.
Since home values have risen nationally, you may have a record level of equity at your disposal. Now maybe an optimal time to tap into your home’s equity through a home equity loan or a home equity line of credit (HELOC). You can use the funds to renovate your existing property, expand your real estate portfolio, or invest in other wealth-building strategies.
If you have rental real estate, now may be time to unload a rental property. Selling your rental property may be appealing if you don’t have reliable tenants or simply no longer want the responsibility. If you put your property on the market, there’s a possibility it will sell quickly for the top dollar, given the current housing market. If you decide to sell your primary home, you may have to pay more to live in a comparable property.
As your home equity rises, so does your net worth. You may want to purchase additional property insurance coverage before someone sues you for an event on your property. You might want to explore umbrella coverage or increase the coverage on your current policy. Fortunately, you can buy an umbrella policy that offers $1 million more in coverage. This policy is on top of what you already have on your homeowner’s insurance policy.
A financial professional can help you determine how to take advantage of the rising home prices and how they may impact the value of your estate. Together we’ll help you review your financial situation and determine the ideal strategy for your unique goals. Contact us today to get started.
SWG 2208431-0522b The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.
In addition, Retire West Texas specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!