Homeowners: Did you know that you are €45,000 richer this Christmas?

Yes, it is true, and the Equity in your home is a powerful tool that can help YOU achieve your goals, says Con Nagle of Global Properties, Cork’s house selling specialists (con@globalproperties.ie).

The good news is that for many homeowners equity has grown substantially over the past year.

House prices in Cork have increased by circa 13.5% in the last 12 months. This means that for a house priced at €300,000 last year, it is now worth in the region of €340,500. Also, as part of your monthly mortgage payments you also paid €4,500 to €10,000 off the capital amount owing, giving you an increased equity of in excess of €45,000. Nice! And well done.

So what? you might say. I still need a place to live in. Agreed, but your equity can be a powerful tool to help you achieve some of your life goals. Read on for more details…

The most simple benefit to reap is that you are probably entitled to a lower interest rate on your mortgage, if you ask. Most banks are willing to reduce your mortgage interest rate as the ratio of your “Loan to Value” falls, in line with your increasing equity. Savings here can be €20 or €30 a month, adding up to a lot of money over the remaining lifetime of your mortgage.
Other options, include;

1. Using your increased equity to buy a home that better fits your needs
   If you no longer have the space you need, it might be time to move into a larger home. Or, it’s possible you have too much space and would like something smaller. No matter which, consider using your equity to power a move into a home that fits your changing lifestyle. Moving into a larger home can provide extra space for remote work or loved ones. Downsizing, on the other hand, may mean saving time and money by caring for a smaller home.

Selection of homes sale agreed by Global Properties this year.

2. Move to the location of your dreams
   If the size of your home isn’t a challenge but your current location is, it could be time to relocate to a new area. Is distance between you and your family greater than you’d like? Do you want to live by the sea? Your home equity can fuel your move to the location where you really want to live.
3. Start a New Business/ fund further education
   If you’re not ready to move into a new home, you can use your equity to invest in a new business venture, or perhaps use a portion of your growing equity, to invest in further education/courses, which is a smart investment in your future. If you can release equity with a re-mortgage, you might be able to make an investment in YOU. Contact a bank or mortgage broker to progress.

The bottom line is that increased equity can help you achieve your goals.

If you’re unsure how much equity you have in your home, contact #Globalpropertiescork (021 4877133) and we can provide a valuation so you can start planning your next move.