User Name Password
Register



Geoff Harris
0516704
Texas

Phone (830) 214-4488
Office (830) 899-6000

E-Mail

BLUE WATER REAL ESTATE

6000 Fm 2673
CANYON LAKE, TX 78133
Quick Search
MLS Number
-or-
Street Name (optional)
City
State
-or-
ZIP Code
Property Type
Bedrooms
Bathrooms
Minimum Price
Maximum Price

A.G. Hill Country-Lake Properties

A.G. Hill Country-Lake Properties

Leveraging Your Money

One of the greatest financial aspects of buying a home is the ability to leverage your money. Simply put, leverage allows you to use a small down payment and financing to purchase a larger investment. For example, if you bought a $125,000 home with 10 percent down, you leveraged the $12,500 down payment to purchase an asset worth 10 times that amount!

Appreciation
The benefits of leverage really become apparent with appreciation, or the rise in value of a property. Using the above example, say you were to live in the house for 5 years, and during that time property values in your area were to rise an average of 2.5 percent a year. Your home would then be worth over $141,000. By putting only 10 percent down, you get to enjoy the appreciation for the full amount!

Paying yourself
In addition to the 10 percent down, you'll also have to make mortgage payments. But with each payment, a certain amount of money is being used to pay down the principal balance that you owe. This is called building equity. So in the event you sell your house, not only can you realize a profit from your leveraged money, you also have a chance to pay yourself back for the money you've put in over the years. No wonder so many people consider a home an excellent investment!

Preferred Partners Check out the best in local home-related services. Automated E-mail Listings Service Sign up to automatically receive new listings today! Home Advice Get the answers on home selling and buying. Real Estate News Find out what's happening in real estate.
AgentAdvantage.comWebsite Design and hosting by AgentAdvantage, official agent and broker website provider of Homes.com
Copyright 2000-2014 Homes.com, Inc. All Rights Reserved. Privacy Policy. Full Terms and Conditions.

Equal Housing Opportunity

Member Login