Did you know home equity can be a valuable resource when it’s used correctly? The equity in your property can be a valuable resource, as it may allow you to secure finance to achieve your investment goals. If it’s something you’ve been thinking about, here is some information that may be useful.
What is equity and how is it calculated?
Home equity is the current market value of your home minus the amount you still owe on your home loan. As an example, if your home is valued at $800,000 and you still owe $300,000 on it, you’ll have $500,000 of equity.
Many homeowners mistakenly think that they have to pay off their home loan before they can start investing in property. You might already have enough equity to use as a deposit for your next purchase. If you’ve owned your home for some time and you’ve made regular repayments to your principal loan, or the value of your property has increased because of a rising property market, it’s likely you will have built up equity in your property over time.
The equity in your existing home is your untapped wealth. By unlocking it, you wield one of the powerful tools to start building a solid investment property portfolio. At Oracle FP, it is about you the client and as such our commitment to ensuring our clients get the very best of service from day one is assured. Every single client has the opportunity to be as involved in the day to process as they wish, with 99% of our clients simply wanting to carry on with their day to day lives with the knowledge that their asset/s are being managed as they would manage them themselves.
If you’d like to discuss your options with us directly, call (03) 9827 1777 or click “Book a call” and we’ll contact you when it’s convenient for you.
PLEASE NOTE: This should not be considered financial advice and should not substitute advice from an authorised & licensed professional.