There are few options for those people who are looking to purchase an investment property with no deposit. This article is going to focus on one specific option: using the available equity in another property in place of a deposit. With some clever finance structuring, it’s possible to avoid the need for a cash deposit.
If you’ve owned your property for a few years, and you have been diligently paying down your home loan, then there is a chance that you’ve built up some equity. Equity is the difference between the value of your property and the total amount of loans secured against your property. A popular wealth-building strategy is to use available home equity to purchase an investment property.
The growth in property values in Sydney has been unprecedented over the past few years. This has resulted in many property owners sitting on large amounts of untapped home equity. When used properly, accessing equity can act as an ‘accelerant’ to wealth building. However, a common question I hear is, “how do I access equity?”
Let’s take a look at the 5 step process of accessing equity.
Property investment is a bit of an obsession here in Australia. The media loves reporting on it and every bloke at the BBQ or around the water cooler in the office has an opinion on the property market. If you’re anything like me, you’d swear that every man and his dog owned 23 investment properties.
So I decided to dive into data released by the Australian Taxation Office (ATO) to figure out once and for all how many Australians ACTUALLY owned an investment property.Continue reading
There is a difference between buying a home to live in and buying an investment property. It’s mostly an emotional decision when deciding which property you will call ‘home sweet home‘, where an investment decision should be made through a rational decision-making process… it should be all about the numbers.
Keen to learn more? Then strap yourself in and read on…Continue reading
This article will go about the most important thing in managing your property- and that is how to avoid nightmare tenants before they even move in. Investment properties make up an important financial approach for many Australian property owners. However, many of the headaches that come with these properties are due to troublesome tenants. Continue reading
Have you heard the term “cash flow positive” and weren’t exactly sure what it means? In a nutshell, cash flow positive property is whereby the rental income exceeds the expenses of the property. Let’s say for example that you’re making a thousand dollars a month and your bills were roughly seven hundred dollars, then that means that you would be getting around about three hundred dollars’ cash flow positive from your property every month. Continue reading
For many property investors, reducing tax is a key part of their investment strategy. Yet surprisingly, many investors are missing out on a major tax deduction that could save them thousands. It’s called depreciation.
Depreciation or claiming the lowering in value of items within your property or the property itself can be an ample way to lessen your tax expenses and to get the most out of your return on investment. If you’re not maximising your depreciation on your investment property, you could be missing out too.Continue reading
Many households have opted to rent over buying a property in the last two years and that is primarily due to affordability, investor demand, and new supply. Over the past twelve to eighteen months, housing affordability has deteriorated, making it far more expensive to buy right now. Thus, it makes renting much more attractive. Continue reading
When you’re a beginner in the property space, it can be completely overwhelming. There are so many different strategies that you need to look at. So many different ways to invest. So many different areas that you can invest in and even researching an area and trying to work if it’s going to be a good investment. It’s just so difficult to know exactly where to get started and how to get down the road of property investing.Continue reading