There’s a lot to know about investments, such as how to choose the best investment loan that meets your needs and goals. A good investment loan can make property investment a much smoother process.
Look after your retirement
So you have worked hard and now you have considerable equity in the home you live in, now its time to start looking after your retirement!!
Its great to have a mortgage free property when you retire however you need to develop an income for when you decide you don’t want to work that 9-5 job any longer.
Have you calculated what income you would need in order to live a comfortable life when you retire? don’t worry if you havnt as that’s the standard answer for most. Lets get together and calculate exactly what you need.
calculate your spare equity
How to calculate your spare equity to see if you can borrow to buy an investment. For the sake of easy numbers lets calculate this scenario based on you having $500,000 remaining mortgage on your owner occupied home with a value of $1,000,000
$1,000,000 Owner occupied property value
Less $500,000 Mortgage
$500,000 Total Equity
Less $200,000 Required equity to be left in owner occupied home . (20%)
$300,000 Additional Equity to put towards your investment property
$300,000/30% equity would allow you to buy up to a maximum of $1,000,000 Investment property (large investment)
Now you know the standard calculation you can apply the same math to your current position.
if you feel this is an option for you then get on the phone and give me a call.
We are here to help.