This is the process we adopt with most of our investors.
You can absolutely use existing equity towards the purchase of an investment property! This is actually what most of our investor clients do.
To do so, you’ll need to determine your equity by subtracting the outstanding balance of your current loan from the current market value of your property. This will require a property valuation, we organise this.
From here, speak to your broker to assist in calculating your borrowing power and how you can put your equity to good use.
We model this out for you so you don’t need to worry about working it out yourself but we essentially look at your current property and loans, then review your cash position and ideal budget to buy your new home.
The most important part of the puzzle here is the current valuation, so let’s get that out of the way and work out next steps.