“Equity” has become a buzzword in recent years when talking about opportunities and wealth. A lot of people spend their time chasing equity as a means to build something worthwhile in their lifetime. One of the best and surest ways to build equity in your life is by becoming a homeowner.
Rent is a 100% Interest Payment
You are more than welcome to stick to renting and saving up money, but this is quite honestly money wasted.
Think about it this way: when you pay rent every month, you are not seeing any return on your investment. Sure, you have a place to live and someone who holds a general responsibility over the safety of the home you’re in. But, what happens when you move out? You get nothing except your security deposit in return.
When you pay your mortgage every month, you are seeing the return on your investment in the form of the home and property you own. When you decide to move out of a home you own, you can either sell the home and get the money you put into it back (and then some) or you can rent it out to cover the remainder of your mortgage along with other expenses. Sure, you still pay some interest but if your home grows in value over time you will ideally receive all that interest back.
Paying rent is like paying a 100% interest loan without having anything to show for it when you’re done.
Real Estate Can Build Generational Wealth
If you’re looking to take care of your heirs and future generations beyond your own, investing in Illinois real estate could be your best bet. Homeownership is a privilege not everyone gets to take advantage of in their lifetime. For those who can, it’s important to invest smartly.
Purchasing real estate allows you to have a home to pass down to beneficiaries who can then decide to live in the home, sell it for profit, or rent it out to create an additional income stream. If you own multiple properties, you are building a business that can be left to your heirs and passed down for generations to come.
Build Equity With Smart Investments
All of this is easier said than done. The Illinois real estate market can be competitive and difficult to navigate at times. That’s why investing your money smartly in the right real estate is imperative to build equity and generational wealth.
At Velazquez Consumer Law, we have helped the people of Illinois make the right investments into not just homes but into equity that lasts for more than a lifetime. Contact our firm and we’ll help you navigate what’s to come.
Velazquez Consumer Law
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