IS EQUITY THE ONE OF THE MOST POWERFUL TOOLS THAT YOU CAN USE IN PROPERTY INVESTING?
I PURCHASED MY UNIT 2 YEARS AGO AND THE PRICES IN MY AREA HAVE INCREASED BY AROUND 70% WHEN IS THE RIGHT TIME TO MAYBE UNLOCK MY EQUITY? KEEPING IN MIND I AM 2 YEARS INTO A MORTGAGE.Tony,
Since your unit is 70% equity available of purchase price so the best to unlock your equity is time that you want to buy your next IPs. You can use your existing equity as a security for your next purchase and be able to borrow 100% or more of purchase price.
Warm Regards
ChanDollars
[Keep going, you’re on your way to financial freedoom]Hi Tony,
Equity is very powerful because it is classed as ‘genuine savings’ therefore gives you access to the best and cheapest loans around.
Be aware though that constantly pulling out equity to fund ‘lifestyle’ expenses eg holidays and expensive toys is a bit of a mugs game as you’ll pay a lot more back in interest over the long term, and affect your ability to service debts on income producing assets like investment properties, shares etc. Plus if you have an unexpected change in circumstance or your unit devalues it can be sticky if you have used all the funds up and having nothing to show for it.
There is a lot of refinancing activity happening at the moment with the rise in property values and it’s helping a lot of people to fund accelerated wealth growth, just be sure that it’s done wisely and with full knowledge of any taxation/legal ramifications.
Happy investing!
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Mel
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