I have equity in my home, how can I build an investment portfolio? You could actually be sitting on a goldmine with that equity!
It’s hard not to be amazed when you hear about friends or colleagues buying investment properties. Especially, when they’re on similar salaries and lead similar lifestyles to you.
There’s no huge secret though. As what many people do is use the equity that they’ve built up in their home to give them a kick start. However, just because you have $200,000 in equity it doesn’t mean you can use it all for investment purposes. You will need to understand that the banks will look at your loan to value ratio on your home and assess your situation accordingly. If successful you can be lucky enough to get up to 90% of the value of the property. We can use this to build up your Master Facility funds and begin investing from there!
Do you own your home and have already paid off some of the mortgage? Then you are at a HUGE advantage when it comes to building an investment portfolio.