Did you know that U.S. households own $36.8 trillion in owner-occupied real estate?! While $11.5 trillion is debt, the remaining $25 trillion is straight equity. And it may come as no surprise that California is leading the way.
According to First American, homeowners had an average of $294,000 in equity in the third quarter of last year—and there’s never been a better time to put that equity to work! But where do you start?
We asked some of California Listings expert agents for their best equity advice to make your real estate investment stretch even further:
“With $25 trillion in equity, U.S. homeowners have a historic high average of $294,000 in equity available from their home. On the Westside and beach communities, this number is over $1,000,000. There is an amazing opportunity for homeowners to tap into this equity via a HELOC (Home Equity Line of Credit) at historically low-interest rates. This enables them to leverage that equity to purchase a vacation home, other types of real estate, rental property or some other investments that would return a larger spread than the rock bottom cost of borrowing.” —Anthony Marguleas, Pacific Palisades expert
“If you are considering retiring to another area, leasing your home for a year will allow you to convert your primary residence into an income property. You can then sell that home and utilize a tax deferred 1031 exchange to defer your gains and unlock the power of that equity. This will provide significantly higher cash flow for life. Consider buying investment properties in a different area or even another state where the returns will be much greater than they would be here in the Greater L.A. markets.” —Robb Stroyke, Hermosa Beach expert