If you’ve purchased a Beacon Hill condo within the last few years, you’ve likely noticed an increase in your home equity. Though some homeowners prefer to use their equity as pure profit when selling their homes, there are many other uses for home equity, including these 5 popular options.
1. Renovations
Alternatively referred to as remodeling or makeovers, renovations can transform one room from looking old and boring to a more modern feel. Renovate the kitchen and bathroom in your Beacon Hill condo so it pays dividends in resale and equity.
2. Consolidation
Blending two or more debts into one manageable lump sum makes payments easier for owners and saves money on interest. Equity consolidation from Boston Beacon Hill condos, lofts, and penthouses is lower than third-party debt consolidation or credit card consolidation programs. In return, credit scores are likely to increase because one bill is less expensive than two.
3. Unexpected Events
Fires, water damage, and vandalism can destroy a property and result in high repair costs. For homeowners who are short on finances, using equity to pay for damages is a welcome bonus. Equity can be used to pay for emergencies such as home repairs, hospital bills, funeral expenses, and job loss.
4. Starting a Small Business
Take your idea to the next level. Use your equity to start or expand the small business you’ve always wanted to get off the ground. Because money can be tight during the startup phase, consider equity as the jump start for the next phase of the business plan. Nevertheless, a plan to repay the equity is mandatory for entrepreneurs in case the startup doesn’t get off the ground.
5. Education
College is expensive, and costs are increasing by the semester. Scholarships and grants are tough to obtain, while student loans can be difficult to pay back. It’s tempting to use equity to pay for a college education, and many homeowners take this route. Nonetheless, this option should be a last resort. Exhaust all your resources before using equity for education. Additionally, ensure the career choice is something you truly desire and can turn a profit to repay your equity loan.
To learn more about making your equity work for you, get in touch with the real estate experts at 92101 Urban Living. We would be happy to show you some of the beautiful lofts, penthouses, and condos Beacon Hill Boston residents desire. Give us a call at 617-720-5454 today