If you have more than 25% equity (this is, the difference between the value of your home and how much you owe on it), it’s considered ‘lazy equity’ and could be costing you as much as $50,000 a year in lost opportunity!
Property valuations are another area that can make or break an investment strategy. Unfortunately, valuations between lenders commonly vary by 5% and in some cases, up to an astonishing 25%. This is especially true if it’s a property being revalued to access equity. Putting that in perspective, for a $1 million property, it translates to a difference of $50,000 to $250,000, all because of contrasting opinions between a conservative valuer and a more confident one. We work with our clients to teach them method’s to legitimately get an appraisal that reflects a property’s true potential – something that can significantly increase your returns.
How to secure your loans separately and why this nearly always helps you make hundreds of thousands of dollars more over the medium to long term.
How to structure the ownership and borrowing to increase borrowing capacity, while reducing risk, income and land tax (this alone can save around $200,000-plus over 20 years in cash flow, which in turn can help you hold more property more safety and significantly increase returns).
Which lenders will allow you to make the most of this equity and how to effectively split your structure and strategy between these lenders.