Whether your mortgage was ten years, or thirty, the feeling when you finally send off your last check to the lender is unlike any other. You suddenly have a lot more extra money every month, and the question often springs to mind: what’s next? Do you buy another property to invest in? How do you make your current home worth more?
Instead of running in circles of confusion, here are the best options for what to do when you finish paying off your home.
Update To Gain More Value
Once you’ve finished paying off your home: it’s all profit as long as you keep the price up. Then, you can invest that monthly amount leftover back into your home. This means updating rooms that need it, refinishing the outside of the house, and giving it the curb appeal it deserves. Upping the value of your home in this way ensures that when you eventually sell it, you’ll make a significant profit on the property. On top of that, it can be nice to update a home and make it feel new after you’ve lived in it for so long!
Invest In Another Property For Income
If you’re questioning yourself, asking ‘should I rent or buy a house,’ the moment your home loan is complete: you’re not alone. Many people finish their house payments and leap right into the next ones. There’s nothing wrong with this, but it has to be well thought out. If you want to rent a property now and sell your old one, what will you do with the money from the sale? The brilliant idea for many would be to buy another property and rent it out, but of course, this isn’t perfect for everyone. Consider how much you could make from renting out a property in your area, and if that covers the costs of insuring the home, the house payments itself, and the tax on the property.
Put The House Payment Into Savings
The average house payment can range between a thousand and three thousand dollars a month: that’s a considerable number to have leftover at the end of the month suddenly. So instead of using it to pad your entertainment and food expenses, you should slide that money directly into a high-interest savings account. Although you may not need it right now, that’s precisely why you should save. This money can become your nest egg for retirement or allow you to buy your next home in cash.
Regardless of whether you’re going to sell your home immediately, or you want to buy another house while you live in your current abode: it’s a good idea to pay attention to market trends. A home can go from being worth $80,000 to over $150,000 in ten years if there’s a good market for it, and more people are moving into the area. So please don’t be shy about paying attention to market trends and making decisions based on them.
Every home is different, and so is every homeowner. So don’t be shy about making changes or deciding to stay the same if it feels right to you: your home, your rules.