The difference between what you owe and the value of your property.
There are significant benefits of owning a real estate property and wealth building is amongst them. That’s why most people implement equity as a key means of building wealth.
Equity in real estate is important because a lot of home or land owners can take advantage of the financial benefits that come with it. With enough equity, you can sell your home and use extra funds as part payment when acquiring a new home.
Besides, proving that the value of your home has increased can allow you to apply for and acquire loans. Simply put, equity can be used as collateral.« Back to Glossary Index