Strategies for Leveraging Equity in Your Sunshine Coast Home

Are you wondering how to access your Sunshine Coast home equity to accomplish your fiscal objectives?

HOW IS HOME EQUITY DEFINED?

The equity in your home is calculated by subtracting the outstanding balance of your mortgage from the property’s current market value. Over time, as you pay off your mortgage, your equity increases. Additionally, if the worth of your home rises, then the equity will increase accordingly.  Gaining an understanding of the equity present in your property is uncomplicated; you must discover its value in the current market and subtract the amount owed on any loans tied to it.

Let’s say you bought a house for $600,000, with a down payment of $150,000 and a loan of $450,000. In that case, the equity you have in the house would be $150,000

When the worth of the property increases to $1,000,000 and $100,000 has been paid off the mortgage, the total value of the house is 1 million dollars apart from the $350,000 home loan balance that remains. Therefore, your equity in the house has grown to $250,000. To accurately ascertain the value of your house, a good idea is to enlist the services of Asset Agents to conduct a free appraisal. This provides an informed assessment of your house’s worth based on the sales of similar dwellings in the area.

Once you have a good grasp of the estimated worth of your home as well as the equity you have in it, it’s time to figure out what amount of equity you can use.

EXPLORING HOW EQUITY CAN BE ACCESSED TO LEND

Having knowledge of your workable equity can provide you with a better perception of the resources you could possibly access. Generally, a bank will lend up to 80% of a real estate’s market worth, with deductions for any money owed and depending on the borrower’s ability to pay.  Chris Wilson from Scf Solutions is local to the Sunshine Coast. He does a great job and will work with you for free to see what’s possible . You can contact him at [email protected]. By taking into consideration your individual circumstances, he can provide you with an estimate of the equity that can be utilised in your home loan.

Chris can also use this as a chance to assess your current home loan and compare the interest rates, fees, and features it has to those of your current lender or other lenders available.

Chris works for clients for free as he is paid by the bank if you ever decide to get another home loan.

DECIDING BETWEEN RENOVATING, PURCHASING A NEW RESIDENCE, OR SOMETHING ELSE ENTIRELY?

The value of your home is yours to use as you wish. This gives you the freedom to upgrade it through renovations and potentially increase its market value. Alternatively, you could use the equity to top up your current home loan if you want to consolidate your debt. Or you might even want to use it to purchase a new car. It’s up to you.  Making use of the equity in one’s home is a common way to fund the purchase of a second property. Instead of having to pay a cash deposit, the equity serves as collateral. Investing in multiple properties can help to accumulate wealth, as the value of the homes increase and also provide a source of income through renting them out.

Even though you have built up equity in your house, it doesn’t mean that you have to remain invested in real estate. Looking into investing in another type of asset could be worth considering.

Taking this into consideration, a savvy approach to wealth building can be made by utilising one’s home equity.

IN CONCLUSION, IF YOU’RE LOOKING INTO TAKING OUT EQUITY, THESE ARE THE STEPS TO TAKE:

• Gauge the amount of equity you have with the help of a free sales appraisal with Asset Agents. 
• Figure out the available equity you have with the assistance of a mortgage broker like Chris.
• Examine the loan options provided by your mortgage broker. 
• Calculate the costs associated with accessing equity.
• Submit an application and complete the loan settlement.
• Unlock your equity and spend it on whatever you desire.
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