I’ve got lots of wasted equity in my property. Can I do something about it?
Something I get asked a lot by existing home owners is: ‘my house is worth $1Million and my mortgage is approximately $500,000, can I use it to buy another property?’
The short answer is – it depends on a few things.
Do you have the necessary income to be able to service the use of that equity?
What is your current financial statement of position?
What do you own and what do you owe?
A number of homeowners feel that their equity is wasted and is sitting there doing nothing…….. but they don’t realise what they need, to be able to use it and make it work for them.
If you have a property and you’re wondering about your unused equity and what it actually is, equity is the difference between your property value and your liabilities secured against it, such as your mortgage. The percentage of this equity potentially available to you depends on the purpose of what you intend to do.
If you are considering the purchase of an Investment / Rental property you may be able to use some of the equity in your existing property as the deposit or as a cross security for the purchase.
If that piques your interest, we need to talk! I can do the numbers for you on whether you can use that equity or not and work with you to create a plan to make it happen.
And it all starts with a chat and a cup of coffee. Ready to do the numbers? Email me now: rachael@ilg.co.nz
