If you own a home in Florida, real estate values could impact your estate plan. The price of residential real estate shifts depending upon many economic factors.
Leveraging your home equity can provide opportunities to strengthen financial planning.
The outlook for the real estate market
According to information in Forbes, rising home prices will likely continue that trajectory for the foreseeable future. While real estate experts do not entirely rule out a market downturn, they point to several factors that exert upward pressure, including the high housing demand from young people entering the housing market.
Many observers believe Florida will remain a hot market and home prices will likely stay high. Even with high housing demand in Florida, several factors could influence real estate values in one direction or the other:
- Rising mortgage rates
- Decreasing home sales
- Rising demand for affordable homes
- Increasing attention to smaller markets
The implications for estate planning
According to LendingTree, you can use your home equity as part of an overall plan to strengthen finances. Older homeowners can use their homes to boost retirement income or pay for long-term care. When incorporated into a comprehensive estate plan, your home equity can provide income for several essential expenses.
Utilizing equity to pay for higher education expenses can reduce the burden on your children and improve their quality of life. Paying for medical expenses with home equity can give you access to lower interest rates and more reasonable payments.
A smart estate plan takes advantage of all of your resources. Rising or even stable real estate values provide many opportunities to improve your financial outlook.