Property in San Diego is at record highs, and the real estate boom shows no sign of slowing down. If you're a homeowner in San Diego, you could unknowingly be sitting on thousands of dollars in unrealized profit. With such a large asset under your control, you have options not available to non-homeowners. If you're currently looking to make some large financial gains for any reason, read on. There are at least three ways to take advantage of the wise investment you've made in your San Diego home, but two of them are especially powerful.
Take Out the Equity in Your Home
The first and most obvious way to get money out of your home is to take out a home equity loan, commonly called a second mortgage. A home equity loan can be acquired from most lenders, and if you have good credit, you'll be able to take your pick for the best interest rate. The biggest drawback of a home equity loan is that you have to repay it. In other words, the money isn't really yours. In reality, a home equity loan is just another form of debt, whether you take it as a fixed-rate loan or draw against a line of credit. While a home equity loan is a way to address a short-term need for cash, it isn't the smartest way to yield money from your home.
Use Strategic Moving to Make Fast Cash
A better way to realize thousands in profits from your home is to do what we like to call strategic moving. Strategic moving involves moving specifically to make money and for no other reason. This money-making strategy is employed by many of the most financially successful individuals, many of whom reside in Southern California, where real estate is at a premium. If you are a homeowner in San Diego, you're in an optimal position to use this powerful strategy for making fast cash.
Sell and Move to a Nearby Neighborhood
One way to use strategic moving to yield thousands in profits is to sell your home in a desirable neighborhood and move to a slightly less popular but up-and-coming neighborhood.
In real estate, property values are heavily influenced by zip codes. When buying, you might pay substantially more for property in the 92130 zip code, for instance, than property just a few miles away in zip codes 92139 or 92126. To take advantage of this quirk, you would sell your house in the highly desirable area and work with your real estate agent to find you a home nearby for less money. If you live in the less expensive zip code, you'll still be near all the same amenities to keep the same lifestyle, but it'll be with more cash in your pocket. You can use this cash to pay off debt, fund your savings, or invest in some venture you're interested in.
The first key to this strategy is moving fast when properties in your area are selling. The second key is knowing where to buy nearby, so that home also appreciates in value, so you can repeat the process in a few years if you so desire. Your real estate agent can help you with these valuations and decisions.
Retain and Rent
Another very powerful strategy for yielding thousands in profits is to retain your property in the popular area and rent it out. Rental income won't give you access to fast cash, but over the long term, you will have a sustainable source of passive income with very little effort. As a homeowner in an attractive real estate area like San Diego, you could charge premium rental rates.
Of course, you would need to invest in a residential home for yourself if you decided to turn your current residence into a rental property. Your real estate agent can help you with that, as well as assisting you to find potential long-term tenants suitable for your rental property. If the idea of being a landlord gives you visions of late-night phone calls and complaints, consider hiring a property manager to turn your rental property into a true passive income revenue stream.
While getting the equity of your home is a popular method to acquire cash, strategic moving—where you either sell and move to a nearby location or move into a new home in San Diego to rent out your current residence—is a savvy way to realize thousands of dollars in profits, either short- or long-term. Talk to your real estate agent in San Diego to discuss your options.