Do you have to work a second job to afford your home? According to the U.S. Department of Labor, 7.6 million Americans work a second job to make ends meet today. When you bought your home, you probably considered both the pros and cons of the purchase not just on your finances but on your lifestyle too. While you might work a second job to make ends meet, it turns out that owning a home could equate to the same.
Added work equals added value
As a homeowner, you know the work that goes into owning a home including lawn care, cleaning, maintenance and insurance - but what if the idea of owning a home as a second job wasn't related to labor at all? According to Bloomberg, home values are rising so quickly in California that many homeowners are earning the equivalent of a second income in equity alone. For example, homeowners in the Los Angeles area are earning $26.35 per hour in equity due to rising home prices.
What does this mean for owners and investors?
While rising single-family home prices is indeed good news for current homeowners and investors, it doesn't come without its downsides. On the one hand, home values are up, but the market in terms of sales is tepid.
Because the market isn't signaling strongly for either buyers or sellers, it's important to have resources on your side regardless of your role in a transaction. When so much money is at stake, disputes can arise quickly that can require outside help to resolve. Like a home gaining equity because or market forces, so can an attorney provide value without labor by working on a buyer's or seller's behalf.
When buying or selling a home, considering how its value will affect its market can help you foresee potential issues with the transaction; and with the right resources, you don't have to make a second job out of the process.