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Did you know that majority of property investors fail but are too embarrassed to admit?
Did you know that 50% of investors sell up their properties in the first 5 years and of those who stay in the market, 90% of investors never get past their first or second property?
Did you know that less than 4% properties currently on the market is what we call “Investment grade” that will produce wealth, yield and rate of returns?
How to maximise equity of your own home?
Equity, in layman’s terms, is the value of the property after deducting debts from it. It is the value or a part of a property that solely belongs to you.
For instance, you bought a property whose worth is $500,000 and a mortgage balance is $300,000, so $200,000 is equity. It means the property share that’s worth is $200,000 solely belongs to you.
As you pay your mortgage amount regularly, the debt will reduce, and equity will increase. With time, equity increases as the property value increases because as the property value increases, the share you own also increases in terms of its worth.
Additional mortgage payments
The faster you pay your mortgage amount, the sooner your equity will increase. If you start paying a higher mortgage amount every month regularly, you will double your equity soon
Home renovation
Maintaining and managing your home to keep it up-to-date will improve its value with time, leading you have to growth in equity. For this, you can have a fresh layer of paint every year or upgrade the kitchen and bathroom timely manner when required to elevate property value potentiall
What is debt recycling?
Maintaining and managing your home to keep it up-to-date will improve its value with time, leading you have to growth in equity. For this, you can have a fresh layer of paint every year or upgrade the kitchen and bathroom timely manner when required to elevate property value potentiall
How to know if debt recycling is good for me?
Well, you can only give an answer because it depends on how stable you are financially. If you are living paycheck to paycheck, don’t go for leveraging equity and debt recycling because you are far from financial stability. Debt recycling will result in more debt, which ultimately puts a strain on your budget and running expenses. If you have a consistent income source along with good savings, then go for it.
After determining stability, ask yourself what your financial goals are because leveraging equity won’t give you results in three or four months. You will get your dream results of earning from your property after a year or two, so you have to ensure this debt recycling strategy aligns with your objectives and timelines.
