Hi
we have good equity in some properties but not much in cash but I am wondering if we can do anything to increase our wealth.
The equity is approx $750000 on property worth approx $1,100,000
but one of the properties is in NZ (I have converted to AUD for the above figures but no doubt it is worthless to us in Australia for the purpose of investing)
My husband is fully employed and I own a start up business so really we are a one wage family and we do have reasonable outgoings so no spare cash each month.
So with our equity can we do anything (other than property) to boost our wealth?
We don't want to sell any property to realise the cash as the properties in Melbourne are ones that we want to develop in a few years as the land is big.I am not investor savvy so little words please
Thanks
Hi Toyah,
We have clients that are in a similar position to you, mainly CEOs and surgeons that are equity rich, busy with other priorities and want to make their equity work hard for them in a passive nature.
Please email me at [email protected] and I will email some information you can look at to see if what we offer would interest you.
Property Trader | Boston West Pty Ltd
http://bostonwest.com.au
Email Me | Phone MePrivate money lending opportunities available paying upto 12%, secured by bricks and mortar!
Toyah wrote:Hi
we have good equity in some properties but not much in cash but I am wondering if we can do anything to increase our wealth.
The equity is approx $750000 on property worth approx $1,100,000
but one of the properties is in NZ (I have converted to AUD for the above figures but no doubt it is worthless to us in Australia for the purpose of investing)
My husband is fully employed and I own a start up business so really we are a one wage family and we do have reasonable outgoings so no spare cash each month.
So with our equity can we do anything (other than property) to boost our wealth?
We don't want to sell any property to realise the cash as the properties in Melbourne are ones that we want to develop in a few years as the land is big.I am not investor savvy so little words please
Thanks
Perhaps you could consider bringing forward the development strategy to enable some additional cash flow or "wealth". This might work by developing one of the Melbourne properties to create a broader property holding. This way you could subdivide and sell land, you could develop sell part and rent part, or you could develop for profit alone.
There are financing tools readily available for this sort of funding as long as all the figures stack up. You need to build a compelling financial picture and delivery timeline and allow a bit of slack for the realisations so the financier doesn't have need to pressure you.
Good luck with it.
Hi Toyah.
I like the advice above. We are currently one one wage too and I've outlined a strategy for us that involves selling one half of property we previously developed to enable us to leapfrog on to the next development project. I don't want to sell either but I think divide to multiply can be the best strategy at times to improve cash flow and pay down loans, whilst still maintaining and increasing existing number of investments in the short term.
Regards,
GI have been in a similar position as I have not worked for 6 years due to kids. You may have to think about joining/ creating a joint venture development or using money partners.
Toyah,
Have you considered whether you can refinance and extract equity?I would look at freeing some equity and depending on your borrowing capacity, purchase again or do a development or renovation if any of the properties need it and the numbers make sense.
You can also then use debt recycling techniques to increase your available cash flow.
Good luck
Greg
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