Is It Time To Tap Your Equity?
By leveraging the equity in your current property, you can quickly take that one property... and build a portfolio that can fast-track you towards your financial goals.
If you already own a house or investment property, you may have equity available that you can put to use for your next.
So how can you leverage your current equity to make that next purchase?
Your equity amount is the current value of your property minus the outstanding loan. Banks will lend up to 80% of this amount for a new purchase without Lenders Mortgage Insurance or up to 90% with.
A risk to watch out for: with a higher loan on the property, annual holding costs are more than if you put in the cash deposit yourself.
To minimize this risk, ensure that you are purchasing a quality property that you feel will increase in value each year by more than the annual holding cost of the property.
The power of leverage. It really doesn’t take long to build yourself a very powerful property portfolio when you start leveraging your existing equity.