All Topics / The Treasure Chest / Equity

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  • Profile photo of Matt_2Matt_2
    Member
    @matt_2
    Join Date: 2002
    Post Count: 0
    July 16, 2002 - 5:31 am

    Hi,
    Anyone in this situation who can offer some advice? I am keen to invest in positive cash flow properties. My current financial situation sees me in a new house with only 12%equity on a $260k property. I am after tips on how to increase the value faster than mortgage payments so I can start to leverage the equity sooner rather than later.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 18, 2002 - 1:18 pm

    Hi Matt

    Here are some quick thoughts. What about doing some type of rejuvenation to your house. something that will increase the value without costing much. Paiting, gardening, carport etc.

    Also when you go to apply for your line of credit or next loan put down your house as being worth a lot more than you think. I know someone that thought his house was worth $440,000 so he put down $470,000 and that is what the bank valued it as-they didn’t even do an inspection.

    Also have you got a 100% offset account linked to your home loan. These can save you heaps of interest, and it is a snowball effect when you start saving interest on interest!!!!

    Terry

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763
    July 19, 2002 - 7:43 am

    Great advice Terry!

    Thanks for your post…

    Matt, my only advice would be to be very careful with over capitalising on renovations etc. Sometimes the only sure way is the passage of time because valuers take an average on all properties in your area with coming up with a figure.

    It may pay to call one to discuss this – or maybe even a real estate agent in your area.

    Generally wait at least six months after buying and then go for a revaluation.

    Don’t be shy about asking your lender for money either… most places are falling over themselves to write new loans. Hey a senior bank contact called us the other day and asked if they could give us more because he was under budget leading up to year end!

    If only it was that easy in the beginning!

    Bye

    Steve McKnight

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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