Building Your Family’s Wealth Over the Next 5 Years

Building Your Family’s Wealth Over the Next 5 Years | MyKCM

Aloha, Lance Owens (RS), and Kimi Nagatoshi (RS) with LUVA Real Estate bringing you your real estate minute.  Over the next five years, home prices are expected to appreciate 3.24% per year on average and to grow by 21.4% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchases and closes on a $250,000 home in January. If we look at only the projected increase in the price of that home, how much equity will they earn over the next 5 years?

Building Your Family’s Wealth Over the Next 5 Years | MyKCM

Since the experts predict that home prices will increase by 4.0% this year alone, the young homeowners will have gained over $10,000 in equity in just one year.

Over a five-year period, their equity will increase by over $43,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, let’s get together to find out if you are able to, today!

In signing off, I have to share last nights sunset. I was driving down Alii Drive and had to pull over at Honls Beach to take a photo. 
Aloha and Mahalo, feel free to share the photo if you like.