With prices of detached homes now 30% higher than last year, homeowners suddenly have A LOT of extra equity in their homes.
And now, many are “cashing out.”
They’re selling their homes to retire early, live mortgage-free, pay for university – travel the world. We’re thrilled that their investment in real estate is creating so many possibilities for them!
Because this is a hot topic among our clients, we thought we’d share some insights and strategies in the event that you’re considering your options.
Here are the five “cash-out” paths some of our clients are taking while the market is hot:
Downsizing Within Waterloo Region
This essentially means shifting to a condo lifestyle. Newer condos offer luxury amenities and put you steps from the best shopping and entertainment in the region. It’s convenient and carefree.
And, since condo prices haven’t risen as sharply as single detached homes, you can, for now, get a lot for your money (leaving you with more cash on hand).
Downsizing OUTSIDE of Waterloo Region
This is becoming more and more popular because of 1) the ability to work remotely and 2) the bang-per-buck you get in outlying areas.
In many cases, you can purchase a town or semi for the same price as a Waterloo Region condo.
Right now, we’re helping many of our clients relocate to smaller cities like Woodstock, Paris, and Stratford.
Transitioning to Cottage Life
Because of remote working, some of our clients are achieving their retirement goals early!
They’re moving to Port Elgin, Southampton, Port Dover, Grand Bend and other waterfront towns to enjoy the cottage life full-time.
Selling and Renting
Want to see the world? We’re finding that’s the goal shared by many of those who are cashing out completely. They plan to travel for extended periods of time and want the flexibility to rent where they please, for as long as they please.
Leveraging to Invest
This is for those in “growth mode.” They are pulling the newly-gained equity from their homes and applying it to income properties within and outside of Waterloo Region.
In addition to their new income stream, they’re also building additional home equity as the market continues to appreciate. This will give them even more options down the road.
Whatever options you’re considering, we can help you:
- Maximize the return on your home
- Get the best deal on your next home anywhere in Southern Ontario
- Grow your real estate portfolio
If you’d like to discuss your options, or just ask us questions, get in touch. You’d be surprised what’s possible right now.