Long Beach Island Real Estate Equity Positions Have Risen
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Home Equity Has Increased 
LBI Real Estate Home Equity Has Increased 
LBI Real Estate Home Equity Has Increased
Long Beach Island Real Estate
With home prices and home values increasing in the LBI real estate market since Spring of 2020, current homeowners in the LBI real estate market are likely sitting on a sizable equity position. While it is a “paper gain,” the knowledge of having made a good investment is always comforting, and there are some ways to take advantage of this newfound equity. With home values being so high in the LBI real estate market, there will likely be some tax consequences to some of the suggestions below, which is why it is essential to discuss any financial investment or alteration with a trusted financial planner and/or advisor. The options available to current LBI homeowners vary, but some of the most common are:
- Sell your home on Long Beach Island
- Perform a cash-out refinance
- Establish a line of credit
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Home Equity Has Increased
First, let’s review what equity is. Simply put, home equity is the difference between what a home is worth and what is owed on the house. To be more specific, “what is owed on the home” should also take into account any costs or tax consequences involved with accessing the equity in your home. The first and perhaps most obvious way to access your Long Beach Island home’s equity is to sell. While this will put immediate money in your pocket, the costs of selling (real estate commission, transfer taxes, etc.) and the tax consequences need to be accounted for. Both of these expense categories will reduce the net proceeds realized from the equity appreciation. The second way to access your home’s equity is a cash-out refinance. With current interest rates being so low, there can be a lot of merit in this route. Depending on your home and if it is a second home or investment property, you can likely tap into a great deal of money to be used for another purpose. Lastly, a homeowner can establish a home equity line of credit. When a homeowner establishes a line of credit, they can access the equity in a home when needed without paying interest on the money until the funds are utilized. This approach can be employed to great effect as it allows a homeowner access to their funds without pulling money out until it is needed. Like any mortgage or loan, every bank and individual will be different, so homeowners should discuss the options available with multiple lenders. For example, some banks will lend less in a line of credit or cash-out refinance on an investment property than they will on a second or primary home. That is why a homeowner owes it to themselves to explore all options.
Long Beach Island Real Estate Equity Positions Have Risen
LBI real estate home equity has increased, and this has many positive benefits for current owners on Long Beach Island. While it may make sense to do nothing but enjoy your home’s new value, it may make sense to explore options available to access all or some of a home’s new worth if there is an excellent reason to do so. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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