Top ten U.S. metros by tappable equity (live, cost, state)
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Homeowners in the U.S. hit $6 Trillion in tappable equity. In SJ the average home owner had an insane $700k in tappable equity! Metro LA had $810 Billion almost 14% of all home equity In the US. SF at $575 Billion at number 2. Californian's are sitting on 40% of the countries tappable equity. Equity is where majority of American wealth comes from it seems that some cities are extremely expensive, but the residents aren't really cashing in on it. https://www.credible.com/blog/mortga...n-home-equity/
Location: Miami (prev. NY, Atlanta, SF, OC and San Diego)
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And that’s why the majority of Americans do not have enough saved for retirement—how many people have at least a few million dollars in equity and/or how many are real estate investors with multiple properties with an income stream coming in??
Much more of my wealth has come from stocks which historically is a better wealth creator, is far more liquid, you can dispose a portion of your assets (try selling only 1 of your 4 bedrooms), you can make money when the market is declining, it costs far less to dispose of stocks, and they are not subject to significant upkeep and replacement costs. A smart portfolio will include stocks as well as real estate—preferably more of stocks as you will still need a place to live in.
Quote:
Originally Posted by sean1the1
Homeowners in the U.S. hit $6 Trillion in tappable equity. In SJ the average home owner had an insane $700k in tappable equity! Metro LA had $810 Billion almost 14% of all home equity In the US. SF at $575 Billion at number 2. Californian's are sitting on 40% of the countries tappable equity. Equity is where majority of American wealthcomes from it seems that some cities are extremely expensive, but the residents aren't really cashing in on it. https://www.credible.com/blog/mortga...n-home-equity/
Last edited by elchevere; 04-06-2019 at 05:55 PM..
Homeowners in the U.S. hit $6 Trillion in tappable equity. In SJ the average home owner had an insane $700k in tappable equity! Metro LA had $810 Billion almost 14% of all home equity In the US. SF at $575 Billion at number 2. Californian's are sitting on 40% of the countries tappable equity. Equity is where majority of American wealth comes from it seems that some cities are extremely expensive, but the residents aren't really cashing in on it. https://www.credible.com/blog/mortga...n-home-equity/
It's actually unwise to cash in on your equity though unless its to boost the home's value OR if its a rental property, to boost up the value for renters by adding more rental units or charging more to the renters that are currently there. Most people really shouldn't be using their homes as an ATM.
Homeowners in the U.S. hit $6 Trillion in tappable equity. In SJ the average home owner had an insane $700k in tappable equity! Metro LA had $810 Billion almost 14% of all home equity In the US. SF at $575 Billion at number 2. Californian's are sitting on 40% of the countries tappable equity. Equity is where majority of American wealth comes from it seems that some cities are extremely expensive, but the residents aren't really cashing in on it. https://www.credible.com/blog/mortga...n-home-equity/
NY is not really low. The West Coast metros are really high due to much geographically smaller urban areas. Eastern metros aren't faced with the same land constraints.
It's actually unwise to cash in on your equity though unless its to boost the home's value OR if its a rental property, to boost up the value for renters by adding more rental units or charging more to the renters that are currently there. Most people really shouldn't be using their homes as an ATM.
To buy cars and furniture, yes. But if you had 50K in home equity to play with and threw it into an index fund in January 2017, you would have made a 13% return on your investment compared to the 4-5% you'd pay on a HELOC. A $50,000 investment, assuming a 6% rate of return with no additional contribution, would result in an ending balance of $89K after 10 years. At 7% you'd have 100K and at 8% you'd have 108K.
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