I am planning to buy my first property.....will I build equity faster with a new build or resale property?

Answer 1

How much sweat equity are you willing to put into a resale? Painting, replacing broken doors, replacing worn wall sockets, hanging new blinds, installing a ceiling fan, replacing flooring, etc....

You can create a lot of value if you are willing to accept less than pristine and put in the sweat equity.

Answer 2

Equity is what you don't owe on the house. That is derived from appreciation in value, or money paid back from the loan. Build out right, especially if you can do some of it yourself, and put in extras that people may want if and when you do sell.
To advance the equity by paying off the loan, do this; after the date has gone by by which you can have your payment in by, and not be late, send in a half payment. The next month, all you need to do is send in the other half, and no more than that. It saves you money both ways, in terms of that horrible mortgage payment, and reduces the loan payback time. That said, if you are in the USA, that interest you pay, comes off of your gross income next year. Another way to reduce pay back time is to send in a double payment. No, that is not 2 full payments. That is the regular payment and the principal from the next one. It might not seem like much at first, but it adds up very quickly. You'll also look very good to the bank as well.

Answer 3

New build? the home value in new subdivisions drops for the first couple of years because the appraisal will be based on re-sales and not the original purchase price.

building a new house in an established neighborhood? depends on relative value, if the other houses are doty and old, it will draw down the appraisal which will be based on what the OTHER houses sell for.

A used house that fits its neighborhood is the only choice for immediate equity. not always the best for the long haul if it will require a lot of maintenance. a balance of appreciation against annual upkeep.

Answer 4

Hi - if you are just starting out in the industry, you need to get some cash flow going with minimal outlay.

So purchasing outright and getting it on the rental market is the first step. Do you have equity in a house already? Refinance and use that as the deposit.

Otherwise, look for educational sources and courses and learn some strategies for purchasing on low or no deposit.

Answer 5

well equity is not something you can give to your property, it all depends on the economy and the recent sales that go on around the area within a six month span