Hi There,
Why do people sell their properties to buy more properties when they could just refinance and pull money out for deposits?
Is it because they’re not able to access the entire amount of equity?
What are the advantages and disadvantages of this?
cheers.Properties sometimes go down in value or remain stagnant. Other reasons include inability to borrow due to serviceability, LVR restrictions or property type / location (ie: lending policies).
It is also sometimes good to sell a poor performing asset to purchase better performing ones. Things change when considering investments and investors should adapt or evolve.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteThere is a property cycle that is clearly evident.
Some buy and hold. Others try to read the cycle to maximise profit by selling high and buying low.
There are various strategies people use to make money.
Personally I plan to topup my loans during the highs and ride out the lows. But there is no right answer.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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