Leveraging Your Money

One of the greatest financial aspects of buying a home is the ability to leverage your money. Simply put, leverage allows you to use a small down payment and financing to purchase a larger investment. For example, if you bought a $125,000 home with 10 percent down, you leveraged the $12,500 down payment to purchase an asset worth 10 times that amount!

Appreciation
The benefits of leverage really become apparent with appreciation, or the rise in value of a property. Using the above example, say you were to live in the house for 5 years, and during that time property values in your area were to rise an average of 2.5 percent a year. Your home would then be worth over $141,000. By putting only 10 percent down, you get to enjoy the appreciation for the full amount!

Paying yourself
In addition to the 10 percent down, you'll also have to make mortgage payments. But with each payment, a certain amount of money is being used to pay down the principal balance that you owe. This is called building equity. So in the event you sell your house, not only can you realize a profit from your leveraged money, you also have a chance to pay yourself back for the money you've put in over the years. No wonder so many people consider a home an excellent investment!

 

Canyon Lake, Texas has much to offer as part of the Beautiful Texas Hill Country. Close to large cities such as San Antonio and Austin, yet still far enough away to enjoy country living at its best. Canyon Lake has eight Corps of Engineer Public Parks, 23 boat ramps, two marinas, campgrounds, golf course, country club, and yacht club. The Guadalupe River, along with our mild climate, provides the opportunity to enjoy many outdoor pursuits such as fishing, boating, skiing, scuba diving, hunting, and wildlife. Centrally located for easy access to two International Airports, IH 35 and Highway 281 for cross country travelers. Canyon Lake is an ideal year round getaway for the whole family as well as for those retiring, or people just looking for a more relaxed lifestyle away from the city.

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