Sell And Save
According to AmerinotExchange.com, “Choosing the right trust deed buyer will increase your chances of a successful closing,” and you can learn more here, if not familiar with this topic. Sometimes your best option for retaining and expanding capital is to divest yourself of assets which are depreciating in value.
One way of deliberately expanding value is through renovations and upgrades. If you’re a homeowner, you might look into opportunities available in the “green” sector of energy. There are often tax benefits. You can go off the grid while retaining the same quality of life. It will save you money while increasing the property value.
Crunching The Numbers
If you’re spending $100 a month on electric utilities, a 5 kWh solar energy system could potentially save you $1,200 a year. What’s more, you can install such a system for between $5k and $15k, depending on your savvy concerning installation, and it will expand property value something like $18k; meaning you win either way.
If you really want to double down, throw in a wind turbine energy system for stormy days. Do you live near running water? A water turbine can do the same thing. Play your cards right, and for around $15k you can add $30k or more to your property value and remain independent off the grid.
If you’re saving $1,200 annually, in 13 years these green energy systems have paid for themselves, but the property retains the additional value. However, you can’t trust the housing market. Bubbles are expanding and busting like mad in today’s market, and you must take this into account, meaning sometimes selling is a better idea.
If you’re paying $100 a month in utilities, $150 a month in HOA fees, $1000 a month for your mortgage, and $200 a month on routine maintenance, the cost of owning your home is $1,450 a month. That’ll drop to $450 once you’ve paid off the mortgage, but that’s still pretty expensive.
The Mobile Option
Meanwhile, you can get a 1999 Winnebago that is full-sized for under $10k, if you look around enough. Find the right place to camp and you can have all utilities for around $500 a month. Though your RV will depreciate fast, if you can save by living in it, you can substantially expand your financial value.
$1,450 a month is $17,400 a year. If you can purchase, license, tag, and troubleshoot an RV for that price, and sell your home in the same year, not only will you have a cheaper living solution, but you’ll be able to save near $12,000 extra annually. In ten years, that’s $120,000.
That amount of money can be invested into a business venture without having to take out any complex loans. Sure, when it comes to business, you need to attain things like proper legal protection; but that’s also easier if you’re not in debt.
Pros And Cons
The difficulty is the comfort level. You’re not going to be as comfortable in a smaller home than in a larger one. But if you can keep at it, you’ll have more means for purchasing a finer, more cost-effective home later on. Imagine being able to pay for a house in one cash sum, rather than worrying about mortgage for years and years.
So asses at your current situation, and decide. Would you do better by upgrading what you’ve got, or by downsizing and saving until better opportunities become available? The choice is up to you. Today’s market offers some exciting opportunities.
Kevin Bennett is a super-connector with ManageBacklinks.io who helps businesses with building their audience online through outreach, partnerships, and networking. Kevin frequently writes about the latest advancements in the SaaS world and digital marketing.