What Do Rising Home Prices Mean for Your Estate?

Since the COVID-19 pandemic began, there have been rising home prices. According to Fannie Mae, they’ll continue to climb by 11.2% this year and expand at a more modest rate in 2023.

So what exactly do these rising home prices mean for you as a property owner and your estate?

Higher property taxes

When home values go up, so do property taxes. While it’s possible to appeal a property tax increase, it can be challenging to convince the tax assessor. To successfully reduce your property tax bill, you’ll need to compile home sales data of comparable houses in your neighborhood at lower price points. Since home price increases are so prevalent, you should consider preparing for and budgeting for any property tax increase that may come your way.

More home equity

Since home values have risen nationally, you may have a record level of equity at your disposal. Now maybe an optimal time to tap into your home’s equity through a home equity loan or a home equity line of credit (HELOC). You can use the funds to renovate your existing property, expand your real estate portfolio, or invest in other wealth-building strategies.

Increased profit

If you have rental real estate, now may be time to unload a rental property. Selling your rental property may be appealing if you don’t have reliable tenants or simply no longer want the responsibility. If you put your property on the market, there’s a possibility it will sell quickly for the top dollar, given the current housing market. If you decide to sell your primary home, you may have to pay more to live in a comparable property.

The need for more property insurance

As your home equity rises, so does your net worth. You may want to purchase additional property insurance coverage before someone sues you for an event on your property. You might want to explore umbrella coverage or increase the coverage on your current policy. Fortunately, you can buy an umbrella policy that offers $1 million more in coverage. This policy is on top of what you already have on your homeowner’s insurance policy.

Consult your Financial Professional

A financial professional can help you determine how to take advantage of the rising home prices and how they may impact the value of your estate. Together we’ll help you review your financial situation and determine the ideal strategy for your unique goals. Contact us today to get started.

SWG 2208431-0522b The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

Our family financial services firm, August H. Velten & Associates, has been in business for 12-years in Melbourne, FL.   August Velten (CLU) is a 40-year veteran of the Financial Services industry.  August is a former instructor for the Life Underwriter Training Council and once occupied the legislative seat for the Maine Association of Life Insurers.  In Brevard County, you may have seen him on local access TV or read one of his articles in a local area magazine.   Jessica Waterhouse, August’s daughter, left her own practice to join the firm in 2019.  Jessica is a Florida licensed insurance producer, securities licensed (Series 65), a long term care specialist (CLTC) and holds certification as a National Social Security Advisor.  Both August & Jessica are instructors for financial literacy workshops in both Brevard and Indian River County offering education in Social Security and Financial Planning.  Contact the office today to schedule an introductory meeting or review of your current financial plan.

Comments are closed.