Equity is one of the best benefits a homeowner can obtain from purchasing a home. The homeowner may not notice it at the time, with all the repayments due, interest etc, but once they have paid a substantial amount into their home they have a valuable asset that may be used for investment purposes.
What is equity?
Equity is the current market value of a property minus any mortgages.
How can you increase your equity?
Homeowners equity by making more repayments on their home loan in a shorter amount of time. Doing cosmetic renovations such as updating the kitchen, adding a balcony or exterior roof or just adding a fresh coat of paint can also add to the overall value of the home.
Equity can be used for many things! Cars, Holidays, Renovations but easily the best use it to invest in an additional investment property. Ros Greenwood (Channel 9) recommends ‘Australians should be planning to own four homes prior to retirement so they can be financially self-sufficient.’ One home to live in, two properties to live on the rent from and the other property will pay for all taxes, fees and charges.
How can you access your equity?
Once you have worked out your potential available equity it would be a great time to perform a financial health check on the home by getting a valuation completed which will give you some time to think about what you would like to do with the equity. Speaking to a professional about how to start completing the following steps will give you a good idea of what’s possible:
At Omnia Group we can offer an obligation FREE health check with the following;
- Check your current interest rates against other providers
- Order a valuation on your home (FREE)
- See if the current provider can offer a better rate based on your current loan structure
If you have any questions regarding your equity and how it can be used to benefit you, call us on 1800 484 143.