Unlocking the equity in your investment property

By the resi financial blog team, 05 September 2013

How do I unlock the equity in my investment property

If you already own investment real estate in Australia, and want to unlock the equity of that property early, you may want to think about the advantages and disadvantages of refinancing.

There are many reasons why you might want to refinance your investment property. Refinancing the loan on your investment property is a great way to free up some money, which you can use for a variety of purposes.

You might want to reinvest that money back into your property by performing renovations or improvements that will boost its value and allow you to gain a greater return further down the line.

Another useful option to consider is to use that unlocked equity to invest in a new property, expanding your portfolio and growing the number of income sources you have under your belt.

However, one thing to be aware of here is that by refinancing you will consequently increase your loan term. This additional commitment is significant and should be considered carefully.

If you are close to paying off the loan on your investment property then you may want to think twice about refinancing, and instead see out the end of your loan period so that you can own the property outright.

You should also keep in mind that refinancing an investment property loan can lead to you missing out on certain tax benefits.

For more information, it's a good idea to talk to a professional who can give you expert advice that is tailored to your needs and your individual investment portfolio. Contact a resi loan specialist today for advice and assistance.

Categories: Home Loans, Property Investment