Do you have investable money sitting, waiting for you to use it? No? Well, if you have equity in your home, you do. If you purchased your home at the right time, and the economy in your area has been good to you, the saleable value of your home may have exceeded your purchase loans value, thereby giving you equity in your home. If you have good credit, reliable income, and a willingness to take a minor risk, you can invest your capital for potential gain. What are some good ways to invest your equity?
Reinvest where it came from
Using the equity in your home to further increase the house’s value is one way. You can look into cost-effective ways of adding big return upgrades to your home. New siding or a new garage door can add low entry cost, high street view value without a lot of interruption of your lifestyle. If you are willing to go with a lot of chaos for a bit, new or refinishing wood floors, return 91% of your investment. If you are looking for an actual profit, if you are reselling immediately, a new roof will add 5% to the real value of your home.
Invest in you
Increasing your earning potential may be one of the best investments. If you have never attended college, attending a junior college or community college in pursuit of an associate’s degree or a trade certificate can increase your earnings. When you consider that the average wage of a worker with a bachelor’s degree is 100% higher than a person with no college education, you begin to see how you might be able to leverage your equity through education.
Investing in the market
Obviously, this is a risk, but you have to define the risk. If you look at the market on a daily basis, you will see an incredible amount of volatility. If, however, you look at the market over a ten-year average, what you will see is significant stability. Based on long-term tracking, the market consistently earns 7% per year. If you look at data from 1950 to 2016, you can see that the S&P value has an adjusted value of exactly 7%. That’s a pretty solid investment if you have the time. Additionally, you can take a higher risk venture if you like, you just have to be willing to deal with the potential for loss.
Start a business
In any investment there is a risk, but why not take that chance on you. Approach your investment in yourself the same as you would investing in someone or something else. Do your due diligence to ensure your investment is a wise one. Treat your own business as you would someone else’s: Get your market research, get your business plan, get any and all information that you would on any other investment, and treat yourself the same as you would treat others before you risk your home. If it all lines up, then go for it.
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