GROWING YOUR INVESTMENT PORTFOLIO WITH EQUITY $$$

Equity, in simple terms, is the difference between the current value of your home or investment property and how much you owe on it.

For example, if your property is worth $550,000 in the current market and you owe $210,000, your equity is $340,000.

The great thing is you can use this equity as security with the banks to purchase additional investment properties.

When using equity to purchase an investment property, banks will generally lend you 80% (or more if you take our Lenders Mortgage Insurance) of your property's value less what you owe.

So, based on the above example, how much useable equity do you have?

$550,000 Value of your property

$440,000 Value of your property @ 80%

$210,000 Less what you owe ‘your mortgage’.

This means