I don’t completely agree but your approach is conservative, hence safe. A HELOC is a tool and has to be used correctly. Velocity banking as it is called is a great way to climb out of debt.
From many years of reading and watching and asking experts on the topic, typically, new kitchens (that are well done and well appointed spaces) can produce a minimum cost recovery rate of 50% of renovation costs, sometimes a LOT more, and bathrooms at least 30%, so this is a great way to put a HELOC to use and roll it back into home improvement. Plus your home is better positioned to compete with other homes once placed on the market, among other benefits that probably far outweigh the depreciating cost of a few appliances that will last at least 10-15 years in good working order and modern style anyway. By this time, you will have paid off your HELOC in that round of revolving spending, if you're smart and able, by year two or three of having done the renovation.
I have an appointment tomorrow with a loan officer my intentions are to rent out my residence and purchase a separate property and move, thoughts on this? The end game is to rent out both properties and then purchase a land and build a retirement home in about 10 years
HELOC info starts at 6:15
I don’t completely agree but your approach is conservative, hence safe.
A HELOC is a tool and has to be used correctly. Velocity banking as it is called is a great way to climb out of debt.
thought this video was about heloc... why the long rant about structured settlements... that should be a separate video and titled as such...
From many years of reading and watching and asking experts on the topic, typically, new kitchens (that are well done and well appointed spaces) can produce a minimum cost recovery rate of 50% of renovation costs, sometimes a LOT more, and bathrooms at least 30%, so this is a great way to put a HELOC to use and roll it back into home improvement. Plus your home is better positioned to compete with other homes once placed on the market, among other benefits that probably far outweigh the depreciating cost of a few appliances that will last at least 10-15 years in good working order and modern style anyway. By this time, you will have paid off your HELOC in that round of revolving spending, if you're smart and able, by year two or three of having done the renovation.
Thanks Mark!
Marc. Thanks for the plain english video.
I have an appointment tomorrow with a loan officer my intentions are to rent out my residence and purchase a separate property and move, thoughts on this? The end game is to rent out both properties and then purchase a land and build a retirement home in about 10 years
If you need (or are taking) 20 years to pay off a $20-25K loan, God help you.