Ensure you’re building on your property portfolio the right way
A number of strategies can expand your property holdings.
If you’re planning to upgrade to a new home, you may have the option to hold onto your old home and make it an investment property by renting it out.
Cash flow is also something to consider. You might be able to use the equity in your home to fund the deposit on your next place. Equity is the value of your home less what you owe on your mortgage. Your Aussie Broker can explain more about how this could work for you.
Ensure your home ticks the right boxes for a sound investment choice before you rent it out. It’s important to check for potential rental returns, future capital gains and tenant demand. If your area has high vacancy rates your property might be empty for long periods and this could squeeze your cash flow.
You may not have to save a deposit on another rental place if you already own an investment property. You might be able to use the equity you’ve built up to invest in another property.
Have your investment property valued as a first step. Your Aussie Broker can help you with this process. This can show how much equity you have. It will also reveal how much you may be able to borrow against the property to fund another investment. Your broker can help put together an application to access the funds from your equity to use as a deposit .
It’s important to speak to your financial adviser to be sure growing your property portfolio could help you achieve your long-term goals.