You don’t have to pay off your home loan before you start investing in property. Equity is a powerful resource but you will need to have your property valued by the bank first, to make sure you have enough ‘usable’ equity to start investing in a property portfolio
For many Australians, an investment property is a fantastic way to generate extra income and secure a long-term asset. Even so, getting a deposit together while paying off a mortgage on the home you live in can be tricky. That’s where equity comes in handy.
Most people don’t realise that their family home is considered “equity” even if it is not fully paid off. You can use your equity to raise the deposit finance to purchase one (or more) investment properties, including all the usual start up costs such as conveyancing fees and stamp duty. Banks view property as a good investment and willingly provide finance for it, especially when using the security of your own home.
Once you decide to implement this strategy, it is essential to investigate your mortgage options. We serve you with a mortgage broker who can look at your current situation and ensure you are getting the best value on your current mortgage and financing of your investment property.
Time for some guidance? Let’s explore your finances and define your goals based on your current situation. You’re welcome to get in contact with us for a free 10-minute consultation call to identify where you are right now and whether you are ready to begin investing in property, or ready for your next property! Contact us: https://axonproperty.com.au/contact-us/
Read the original source article smartline.com.au