Houses don’t just provide shelter; they’re investments that grow over time. Imagine stepping into the future, only to find out your house has doubled in value. That’s not a fantasy for some homeowners.
But here’s the real question: how much will my house be worth in 10 years? Whether it’s your forever home or a stepping stone to something bigger, knowing its future value can be both exciting and essential for planning.
This guide will walk you through understanding and influencing your home’s worth in the years to come, and what the true value of it will be for you. Let’s get started!
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Key Factors That Influence Home Value
So, to get straight to the point, there are a range of factors that will affect the market value of your home. Some of the key factors include:
- The condition of your home
- Local real estate trends
- Your home’s age
- Where your property is located
- The wider property market outlook
Once you have a firm grasp on some of these factors, you can then potentially come up with an estimate of how much your home’s value will be in 10 years.
Yet there is another value that we’ve overlooked: home equity. This is something that every homeowner should calculate if they want to figure out the true value of their home, now, and in the future.
What Is Home Equity?
Quite simply, home equity is the personal value you have in your home. You can calculate this by subtracting your home loan from your home’s value.
Now, it’s very easy to do this when you know the price you bought your home for. But it’s a little more difficult to calculate your home equality in the future. This is where a tool called an equity calculator can come in handy.
Using an Equity Calculator
With the use of tools like an equity calculator, you can learn the true value of your home. You’re basically calculating what you would pocket after selling to a potential buyer.
For example, Australians can use this equity calculator to figure out what their potential home equity might be in the years to come.
How to Increase Your Home’s Equity
Well, the first thing you can do is approach your bank for a new evaluation of your home’s value. You might be surprised how much your home is worth now since you bought it.
Also, you can do things such as:
- Applying for a shorter loan
- Putting down a more substantial deposit
- Making house upgrades
- Paying out more on your repayments
If you are struggling to find the cash to do any of the above, you’ve generally got two options. The first is to try and budget better for your household (if possible). The second is you can try to find extra sources of income such as a second job or creating an online business, for example.
Getting to Grips With the How Much Will My House Be Worth in 10 Years Question
So, how much will my house be worth in 10 years? It’s almost impossible to know exactly. But we certainly suggest you figure out your home equity now after a bank revaluation so that you can make a better estimate for the future.
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