Unlocking the equity in your home can be an effective way to assist in purchasing an investment property to help build your wealth, complete those renovations that you’ve been putting off for so long, or simply enjoy life.
To work out how much equity you have in your home, you’ll need to subtract any debt remaining on your mortgage from the property’s overall value. So, if your property’s worth $500,000, and you have $300,000 left on your mortgage, then your equity is $200,000. If you’re not sure how to work out your property calculations, use ours here!
But it’s not quite that simple when it comes to accessing that equity through your lender…
They may send an independent valuer out to your property, and the valuation figure they come up with may not match up to what you think its actual market value is.
The equity in your home will increase both as you pay off your mortgage and as the property’s value increases. So, if your $500,000 property increases in value by 10% over 12 months that’s an extra $50,000 in equity!
Add to this any reduction to your mortgage gained through repayments, and your equity has significantly increased over the year.
If you’re still not sure what’s best for you and how to get the most out of your property investments, the team at Rise High wants to help! We can determine how much equity you can unlock and help you get that next property sooner!
Fill out the form below so we can help you achieve your dreams!