getting to build equity

[GoodTaste]

One of the best parts about being a homeowner is getting to build equity in the property you own. Equity refers to the portion of your home that you own outright. If your home has a market value of $300,000 (what it could sell for today) and you owe $200,000 on your mortgage, you're left with $100,000 in equity.
Source: USAToday
Does "getting to build equity" mean "being given the permission or opportunity to build equity (the market value - such you increase the value by improving your bathroom and bedroom)"?

 

[emsr2d2]

Permission? No. Opportunity? Yes. However, it doesn't have to include making improvements to the property. As a rule, people hope that the longer they keep hold of a property, the more it will be worth.

 

[GoodTaste]

That is, people generally hope that the longer you keep your house, the higher the market value the house will have?

 

[5jj]

That's what emsr2d2 said,

 

[tedmc]

That is, people generally hope that the longer you keep your house, the higher the market value the house will have?

Some properties appreciate faster than others, but properties can also depreciate. This is what investment is about.

 

[Tarheel]

The equity in a house is what you own compared to what you owe the bank. Once you pay off the loan your equity will be 100%.

 

[5jj]

Once you pay off the lawn your equity will be 100%.

That's a fun typo.

 

[5jj]

Some properties appreciate faster than others, but properties can also depreciate. This is what investment is about.

True, but, in the UK at least, the general hope/expectation is that house prices will rise. They always have, in the long run.

 

[probus]

In my experience the UK property market is rather different from that in North America. Especially in London people will often not sell a freehold interest in property, but only a leasehold interest. A 100 year lease is common, and I suppose leaving the freehold to one's descendants a century hence makes economic sense to some people. But I have even heard of one thousand year leases in London, and I cannot even imagine what those lessors are thinking.

 

[Tdol]

Freeholds in large parts of London are owned by people like the Duke of Westminster, whose family got the freehold rights hundreds of years ago when Westminster was mostly fields. People selling leasehold rights generally have no freehold rights. The longer the lease that can be sold, the more the property is worth. In many of the desirable parts of London, you cannot buy freehold, so people are selling what they bought, not a reduced version of it to make some cash. It's the Duke of Westminster that makes the freehold cash- it's the rich what gets the pleasure and the poor what gets the blame, and ever has been so.

 

[Tdol]

That's a fun typo.

The bigger the lawn....

 

[5jj]

I once stayed at a hotel with a very large lawn indeed. The manager used to patrol the lawn at night get rid of any tramps sleeping there. He didn't want anyone to recognise him and know that he was too tight to employ someone to do the job, so he wore a mask when he was patrolling.


He was, of course, the lawn ranger.



I'll get my hat.