Building Generational Wealth With Real Estate
Real estate is a powerful tool for building generational wealth, representing 55% of average household wealth. In Canada, 66% of people own their homes, and 73% believe homeownership is the best investment they can make. Whether you’re already a homeowner or just starting, there are steps you can take to secure a prosperous future for yourself and your family!
Using Your Home Equity to Leave a Legacy
If you have built up equity in your home, you have a valuable resource that can help your family move into better neighbourhoods and secure a more stable financial future. By assisting your children or grandchildren with a down payment or buying a home, you’re not only giving them a place to live but also instilling the importance of financial responsibility and savings. A mortgage acts as a forced savings account, helping them build equity over time.
- Support for Down Payments: It’s worth noting that 54% of millennials received help with their down payments, highlighting the importance of family support in achieving homeownership.
- Immediate Impact: Using your equity to help family members now can be more beneficial than planning for an inheritance later.
Steps to Use Home Equity for Family
- Discuss with Your Partner: Ensure that you and your spouse or partner are on the same page with your plans.
- Consult Family Members: Talk to your children, grandchildren, or other family members to understand their goals and needs.
- Seek Professional Advice: Meet with a qualified financial professional to explore options like gifts, loans, leases, or trusts. This ensures that all legal and financial aspects are appropriately handled.
Starting Your Homeownership Journey
If you’re not yet a homeowner, this might be a good time to discuss options with your family. Here are some steps to consider:
- Improve Your Credit Score: Pay down existing debt and avoid taking on new major expenses, such as a new vehicle, appliance, or vacation.
- Get Pre-Approved for a Mortgage: Talk to a qualified mortgage professional to get pre-approved, making you a stronger candidate when the right property comes along. I can connect you with trusted professionals from my network to guide you through this process.
In Conclusion
Whether you’re leveraging existing home equity or just beginning your real estate journey, taking these steps can help build generational wealth and secure a brighter future for your family. Homeownership is more than just a place to live; it’s an investment in your family’s financial future.
