October 27, 2024 by Duane Mengel
Accessing Your Home’s Equity to Purchase an Investment Property 🏠💰🏢
If you’ve been living in your home for a few years, guess what? You might be sitting on a goldmine of equity! 🎉✨ That’s right—your property could have gained value, and now it’s time to discover how you can use that equity to level up your investment game! 📈💪
Imagine this: you could borrow against the equity in your home and use it to snag that dream investment property you’ve been eyeing! 🏠💖 It’s like having a secret key to unlock new doors of opportunity and financial growth! 🚪🔑💸
What is Equity? 🤔💡
Equity is the difference between the value of your property and the amount you still owe on your home loan. It can be a powerful tool when it comes to growing your wealth! 🌱💰
While there are many ways to use your home’s equity—like renovating or funding a holiday 🌴✈️—one of the smartest options is purchasing an investment property. 🏢💼 The process might be simpler than you think!
5 Steps for Unlocking Equity to Buy an Investment Property 🗝️📊
- Step 1: Estimate Your Property’s Value 🏠📈
If you’ve owned your home for a while, its market value has most likely increased! You can use comparable sales in your area, a real estate agent valuation, or a free PropTrack property report from your Mortgage Choice broker to estimate your property’s current value. 💵💬
- Step 2: Calculate Your Accessible Equity 🧮💰
After determining your home’s value, subtract your current mortgage balance. For example, if your property is worth $1.1 million and your mortgage is $400,000, you have $700,000 in equity! However, you can typically borrow up to 80% of your property’s value without incurring Lender’s Mortgage Insurance (LMI). 🚫💳
- Step 3: Assess Your Ability to Service a Loan 💼💸
Even if you have equity, it’s essential to ensure you can handle increased repayments. Speak to your Mortgage Choice broker to explore options based on your income and financial situation. 🧑💼💪
- Step 4: Explore Loan Options 💡🔍
Once you know how much equity you can access, it’s time to explore refinancing options. Keep in mind that interest on investment loans is tax-deductible, so reach out to your accountant for advice. 📝💼
- Step 5: Loan Application and Settlement 🏢📄
After selecting your loan options and finding the right investment property, your Mortgage Choice broker will assist with the entire application process—from paperwork to negotiation to settlement! 📝🤝
Get in Touch ☎️💬
Considering accessing your home’s equity for an investment property? Contact Mortgage Choice Coffs Harbour – Duane Mengel at 02 5642 4994 or duane.mengel@mortgagechoice.com.au. We’re here to help you grow your wealth and answer any questions you may have. 🙌📞
