12 Steps to Christmas – Equity
Welcome to our 12 Steps to Christmas, our guide to advance your financial health by Christmas 2024.
The equity in your home is integral to growing your wealth and creating a pathway toward financial security for life. With a focus toward maximising your equity to further invest in property or alternative markets, there is a way to increase wealth and utilise debt to your financial advantage. With the guidance of qualified professionals, make the most of your equity position by learning how to best use it to fund your financial goals.
In this edition of the 12 Steps to Christmas, we speak with two of our leading brokers to learn all about equity and the many instances in which you can apply your equity to receive real benefits in property and lending.
Property Price Increases
With substantial price growth recorded in Australian residential property, the chances are that your equity position has significantly increased. How does capital growth impact your capacity to further invest in property and also assist with paying down your debt?
Security Considerations
For Australian property investors, there are two ways to lend against the equity in your property. Should you look to cross-secure your properties to maximise the debt against your combine value? Or is better to keep your properties separate to mitigate risk?
Misconceptions with Equity
We find people question how equity is actually accessed and utilised. Equity can be viewed as the wealth in your property that can borrowed against, or the cash profit that can be obtained when selling. In this clip we cover the misconceptions with Equity.
What could impact Equity?
There are certain things that could positively and negatively impact your equity position. These may be political, market driven or personal choices. We chat about what could potentially impact equity based on the current and future Australian property market.
Equity & Valuations
Unlocking your equity could be dependent on the lenders that are available to you. Lenders don’t value your property the same as each other, which may mean you have greater capacity to access your equity with one bank over another.
Equity & Interest Rates
Your equity position will determine how low or high your interest rate should be. Lenders discount their home loan products based on the size of your lending against the value of your property. The more equity you have, the lower your interest rate should be.
Get started now!
To chat about your property goals, simply call 08 8300 8300 or click contact us today.
Important Information
*The information provided in this article is general in nature and does not take into account your personal circumstances. Since everyone’s personal situation is different, this article should not be taken as advice. Market commentary is based on recent economist reporting and references can be made available upon request.
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