There's some funky TikTok advice out there people!
🅰️: When it comes to real estate, equity is the difference between the current market value of your property and the amount you owe on your mortgage (simple answer).
🅰️: How you use equity is up to your comfort and personal situation. Some of the ways it can be used include:
✅ Paying off your home and having no debt at all (full equity! Yay!)
✅ Using it to renovate your property, enjoy it more
✅ Leveraging it to buy investment properties
✅ Using equity to renovate properties and increase value (and more equity)
✅ Borrowing from equity to invest in other assets (like shares or ETFs)
✅ Using it to provide a gift (or loan) to family
✅ Some use it to extract cash.. to start or invest in business
Summary: There's options with equity. Critically, many need informed advice from legal, tax or credit professionals - we'll steer you in the direction of these experts. [Obviously, the list above is not to be taken as our personal advice to you]
❗️ One thing we find most often overlooked is that if you want to "take out/use equity", you're probably borrowing more, which means you'll need to pass the capacity test for your lender - an important consideration! We can run these numbers quickly (call me!)
Truly Finance's mortgage broker advice, financial services and property strategies are generally complimentary. We do this for the best interests of our clients and we strive to be the best mortgage brokers!
James Brett. Principal. Awarded Mortgage Broker ☎️ 0439 591 759
Victor Simone. Principal. Legend Mortgage Broker ☎️ 0449 659 029
Andrew O'Brien. Superstar Mortgage & Finance Broker ☎️ 0451 308 292
#Equity #UsingEquity #TrulyFinance #Finance #Mortgages #HomeLoans #BestMortgageBrokers #MortgageBrokers
Credit Representative Numbers 521733, 550284 & 550765 are authorised under Australian Credit Licence 389328
