What is Equity and How Do I Use It To Invest Sooner?
Did you know that many investors get into the investment market by using equity (growth) in their existing home with little or no cash outlay on the investment purchase?
It is one of the common areas we assist clients with the know how to get them into investing sooner than they may have otherwise thought. This also assists maximise the taxation advantages to the investment and is a vital factor to get right.
With the ability to service (repay) the new facility (with the assistance of potential tax advantages plus rental income) and the right amount of equity in your existing home, you can often own that investment property much sooner than you otherwise thought you would.
Unlike when you first bought a home and the bank required a verified a saved cash deposit as a condition of your home loan approval, if the balance between what you owe on your home loan and your property value (equity) is sufficient, this enables you to borrow against that to fund the purchase of an investment property with no additional cash reserves required. In short, the growth in your existing property has contributed the savings for you.
There may also be tax advantages to purchasing this way. We have access to property data that will help explore your equity position.
We also have a great ebook that takes you through the process of investing and would love to pass it on to you if investment is on your radar but don’t know where to start. Just get in contact and I can email it. You may also have a friend or family member that has mentioned something in passing that may find it attractive as well.
I am always keen to add your friends and family to better outcomes via your referrals.
Happy reading, and as always should you prefer an appointment to run through your options we are more than happy to set something up.
We all know that the key to investing is growth requires time, so why not get into it sooner if you can?
Michael Schipper from Talk Home Loans is a home loan specialist and mortgage broker based in Brisbane. Contact him about how to maximise your results from your home and investment lending.