What's your favourite instant equity strategy

I've seen people do clever things like buy a property, add a door to dining room/second living space to create a bedroom, and pull out a good chunk of equity. What are some other ways you've pulled out equity quickly before? And how long did it take?

 

Parent dies?

 

Briefly it's instant equity until they realise you murdered your parents

 

This post seems to trying to elicit tactic for going to zero to 100 in no time at all, and I think inheritance would be the closest thing to that.

I suppose there is something in sub division too, but not instant.

It is surprising to mix instantness with property as it is generally believed to be longer term investment.

 

Well, I guess "instant" equity is a misleading term, but I've generally seen people use it when they mean a relatively short time frame for equity. I didn't mean literally instant.

For some investors gaining equity in a short period of time is important if they want to build portfolio in a rising market, before borrowing power drops etc. It doesn't necessarily directly relate to whether the investor intends to hold it long term.

 

Everyone wants to build assets as quickly as possible.
But.... how much uncertainty are you willing to accept?

 

Buy in an increasing market.

 

What ideas do you have

 

Buy where you think the market is going to go up fast. You want extra? Do OTP land by borrowing 100%.

 

Buying unregistered land.

 

Marry someone with equity.

 

Clever use of desktop valuations can sometimes allow instant equity releases after a purchase without actually doing anything to the property
This is where I feel I really add value (literally) to my investor clients

 

How do u release the equity? Ask nicely?

 

strychnine

 

Steal, lie and cheat.

 

Simply buy at price points that give you instant equity and yield, buying unconditionaly might give you 20k in equity. The last property I bought I paid 425k for and the bank gave me a 630k loan. Equity is used to buy shares which give growth and yield, which can be sold to buy property , but if the bank use dividends for servicability selling the shares can be counter productive for drawing on growth from property portfolio . Getting high returns on equity from 4 sources. growth and yield on both security and loan is my strategy. Most people buy at prices that give them no equity and and poor yield . For example a 240k property with 200k equity is better than a 1m with no equity no spare cash and no positive cashflow.