Equity 1: Accessing for a property

How do you afford an investment property when you have no savings but you own a property that has equity in it? Hey, it's Aaron from Diagnostics and Finance. Now I would probably think that it'd be better to have both savings and equity in your property to go buy an investment property. But today I just wanted to talk about how you can access equity out of your property to bump up your savings or bump up your ability to buy the next property. So therefore if you've got a house and you owe about say 50% on it and we'll take a million dollars, if it's a million dollar house, you owe 50% on it. There is a bit of leeway between that 500,000 and a million to be able to access. Most banks will go charge you less when you borrow 80%. So on a million that's 800. So $1 million you owe 500. There's a roughly rough calculations, $300,000 sitting in your asset that you can pull out with reason to go and buy another property. We can set that up with different structures so your accountant can see what money's coming out of where for the particular property along the way and be able to manage that effectively. Now assets only one side of the question. You need to have the income to be able to afford that extra $300,000 worth of equity draw. So that has to go into the equation as well along with the credit cards and things. And if you saw my last video in regards to benchmark servicing rates, that's all changed. So there may be that little bit extra that we can pull out to be able to sneak that next property in or even prepare you to go shopping for the next property. Hey, it's Aaron for Diagnostics and Finance. If you're looking to get more equity out of your home, get in contact and we'll be able to go through the numbers for you. Bye now.