Can Equity Help You Retire?

Perhaps you have just retired or are nearing retirement age and still find yourself without a solid plan. Or, perhaps you’ve been a planner for decades but are still finding it interesting to navigate a new stage of your life. The truth is, you’re not alone. More than 10,000 people every day reach the standard retirement age of 65, and according to research from the Retirement Industry Trust Association, only 47% of people in that generation have already retired. 

As you’re stepping into this new phase of life, perhaps you find that your home no longer fits all your needs and requirements. Because of the nature of the real estate market in recent years, you may be in a better position to move or upgrade than you realize! And all that equity you’ve built in your home these many decades? It can absolutely help catapult you into that easy retired life. 

You don’t even have to have been a homeowner a full thirty years to enjoy equity, either. Granted, home prices have skyrocketed since any mortgage that would have been granted in the early-90’s, but even purchasing in the last few years could leave you swimming in cash. 

Equity

According to the National Association of Realtors, “a homeowner who purchased a typical home five years ago would have gained $125,300 from just price appreciation alone.” Even just purchasing one year ago leaves buyers with $64,000 or more in equity due to home price appreciation. 

As a retiree, this is great cash to use towards downsizing, moving closer to family, or buying outright and having no mortgage payment whatsoever. Just sit back and enjoy the fruits of a life well lived!