‘Equity Rich’ – HomeEgg introduces new Average Annual Home Equity insight to help homeowners better align home with wealth strategies

Home Egg
By HomeEgg.com
January 21, 2021

Commonly we think of home equity as a lump sum and hold that ‘magic number’ in the back of our minds as we plan for retirement. Something like, “Wow honey, we’re doing great! We have about $285,000 in home equity.”

No doubt being equity rich feels good and offers a powerful level of financial security, especially in challenging times.

HomeEgg has long provided homeowners with a trusted and independent perspective of their home equity. But we see a greater opportunity to help homeowners go beyond the traditional ‘lump sum’ number and experience their equity position through an annualized lens. Namely, HomeEgg’s new Average Annual Home Equity metric.

The benefit of this new home performance insight is the immediate ability to better optimize and calibrate wealth management, personal investment and cashflow strategies to reflect your real annual home equity trends.

For example:

• If your total home equity is $285,000, and that gained occurred over a 20 year period, you’ve accumulated an average of $14,250 in equity each year. That’s good but it might sound the alarm that it’s time to pursue other financial channels more aggressively to boost your wealth and safeguard cashflow. You might also avoid tapping your equity to pay for big-ticket things like college, home improvements or medical expenses.

• Inversely, if this same $285,000 equity gain is over 3 years, you’ve accumulated an average of $95,000 in equity each year. This opens a much broader range of options to absorb cashflow constraints and increase your risk tolerance for other investments

Each homeowner’s home equity circumstance is of course unique, especially relative to other financial factors like income, 401K, taxes, inheritances etc.. But one thing is for certain: keeping a pulse on your home equity trends, and monitoring your Average Annual Home Equity gain is a great step toward ensuring your wealth management and cashflow strategies are optimized to help you achieve your best financial outcome.

Power to the homeowner!

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