Sell Your House to Invest in These 3 Things
Buying a home has always been a part of the American dream, and though there’s nothing wrong with that, it’s not the route for everyone. A home will most likely end up being the most expensive purchase you’ll make in your lifetime, and the additional expenses associated with being a homeowner can end up costing you a good chunk of your savings.
The reality is that buying a home is no longer the dream for everyone; many choose to explore the rental market and the many financial and flexible benefits it offers. In the current market, renting can end up being a better financial decision.
Many are unwilling or unable to commit to the costs associated with buying a home, such as a 20% down payment, mortgage payments, insurance, land transfer taxes, and so on.
The money can be put to different uses, that may end up bringing more financial returns than owning a home. Keep reading to find out three things you can do after selling your home and cashing in on the equity.
Save for Retirement
Instead of worrying about purchasing a home, you could use the funds saved up for your down payment, or the amount you’ll cash in on the equity from selling your home for retirement. Having an extra $300,000 could potentially pave the way for a secure retirement.
If you’re worried about what the future holds financially, selling your home and renting a smaller place can have many financial benefits, especially if you live mortgage-free. Downsizing frees up your assets and allows you to have extra cash in the bank and supplement your retirement income, instead of leaving your money in your property.
Using the lump sum freed up by your home’s sale will give you enough to begin contributing to a registered retirement savings plan if you have not already done so. Although looking forward to retirement is a familiar feeling, being unprepared financially can cause stress.
However, knowing you have built up equity in your home can be a means for you to pay off any debts and start saving for retirement.
Invest in Stocks
Many people invest in the stock market due to the smaller amount of capital needed to support when buying real estate; you have to save and put down a substantial amount of money. Investing in the stock market makes the most sense when you look at the benefits that boost your returns.
Investing in companies that offer dividends allows you to make anywhere between two to ten percent in returns depending on the company. Although stepping foot in the stock market can seem intimidating and carry a certain amount of risk, you can start investing with favorable returns with sufficient research.
Some may even choose to use third-party brokers or investment companies to help with their stock investments. However, they require a small commission for any trades done; the benefit is you will have an expert second opinion on any investments you’re making in the stock market.
Fund your Business or Startup
If you’ve always had a dream to start your own business or wanted to create a new project but couldn’t seem to gather up the capital to do so, now might be your chance. So many people miss out on incredible opportunities simply because they do not have sufficient funds.
If you have built up equity in your home and can cash in after a sale, pay off your debts, and have some leftover, you may even consider going the route of entrepreneurship, with sufficient funding and research, of course.
Sell your Home Fast in Kansas City
Ever wondered, how do I sell my house fast in Kansas City? KC Property Connection is a home buying company who can help you accomplish this. We offer a quick and easy way to sell your house in Kansas City, for cash.
Our homeowners don’t incur any extra costs like repairs or real estate agent’s commissions when they sell to us. Our process is simple: give us a call to submit your information and let us come by to see the property, after which we will then present you with a cash offer, and you get to choose the closing date.