The goal of most property investors is to have a portfolio of sufficient size and diversity that they are able to weather any economic downturn and still have enough assets to generate a reasonable income. This goal is achievable as long as investors understand the fundamentals of the real estate market, and they have some equity in an existing property to get them started.

Start a Real Estate Portfolio with Unused Equity

If you already have a home mortgage that has been running for a few years and the value of your home has increased during that time, you already have some equity. This is simply the difference between what you owe on your mortgage and the value of your home. Depending on individual circumstances, this could be a substantial amount of money, enough to use as a deposit on investment real estate.

Get the Right Finance and Structure for the Best Outcome

If you have one or two real estate investments with unused equity, then you are to be congratulated. You already have a substantial platform on which to further increase your portfolio. However, before you go ahead and make any decisions, you need to make sure that you have the right structure to hold your assets and the right finance arrangements in place.

Interest rates currently are at historically low levels with no sign of an increase in the foreseeable future. This is the perfect time to be thinking about continuing to add to your portfolio, and we are here to assist with advice on how to set everything up to get the most out of your situation. We are Position One Property, an investment property specialist with suitable real estate stock available ready to be recommended to astute buyers.

Buy Where Demand is Just Beginning to Build

We do not limit ourselves to just one area of the housing market, and this is a key point for our clients to understand. While the market at the moment is talking up inner-city apartments that have become expensive as a result, we have equally suitable properties in many others areas where demand is just beginning to outstrip supply.

Don’t Let Unused Equity Just Sit There

Market research shows the growth areas throughout the state, and it is these areas that will provide the demand for rental housing that can turn your stagnating equity into a wealth creating strategy. You need to have enough income to make intermittent mortgage payments in the event that one or more of the properties becomes vacant for a short time. If you can do this, your equity can be used to finance additional purchases in growth areas.

If all this sounds interesting, contact us to make an appointment to speak to one of our specialists.

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Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.