Who is Accessing Equity?

Just thought I would ask, who is currently accessing equity, how are you doing this? Growth/Adding Value.... and Where/Which State?


MTR

 

I'd guess that around 50% of my current apps involve an equity release for a future purchase.

Cheers

Jamie

 

I release equity to buy Ferraris and Lamborghinis.

 

Jamie
sounds good, I expect that would be in the main Sydney and Melb markets?

 

Via elbow grease in SA

 

keep it up, I mean the elbow grease

 

Released Sydney equity to buy in Melbourne (and possibly other states).

 

Equity from my PPOR in Sydney is funding deposit, stamps and other buying costs for my next IP ( although I have the cash to spare I prefer to keep it in offset ).

I've also used some equity to top up my share portfolio ( but keeping a matching cash buffer in offset to the value of the shares/ETFs purchased ).

 

You would think there would be alot of cashed up mums and dad's out there ready for the next great investment

 

Yes, Desktop vals, Perth WA

 

I've never refinanced any of our ips. I do it the old fashioned way, saving and am now selling the worst performers to invest elsewhere. Wouldn't discount it though if I needed to do it.

 

Really? must be property you purchased in 2014?

 

I would have thought there would be many investors accessing equity in particular Syd and Melb..unless selling......am also curious to see whether any other States considering the number of what's on Brissie and Adelaide

 

It was a recent refi of PPOR and was 60k above a full val from another lender.

 

nothing wrong with this and it's worked for you, however do you think this may have slowed you down, missing opportunities?

 

I tell people to get it while you can, when you can. If not required immediately we park it and use it when needed without incurring interest payments.

When you realy need money is usually when you cant get it so get it when you can as its essentially free until you draw it down.

This highlights the importance of mindset towards debt as most of us have been taught to "not have any debt" OR "pay it off as quickly as possible" and sometimes this causes blockages to forward progress. Learning to manage debt and cashflow is what is important, not debt in and of itself.

 

Possibly, but I have double figure ips and don't need a job. I definitely could have gone harder, but we had very well paying jobs, who's to say I would have made more by giving up the job and developing? Some I read about get quite average results fom developing. Agree I could have done more but I have everything I need.

 

Sounds perfect to me.

 

the proof is in the pudding...excellent outcome

 

I have millions of dollars in debt so please don't hold me up as an example of someone with a problematic mindset. I'm willing to bet there are a lot of people who have accessed equity to the max and not progressed as I have. I have a multi million dollar portfolio and have a measured view on how to grow this further without excessive risk. Everyone's situation is different.