How would you like to buy your next investment property without any money coming out of your own pocket?
A few weeks ago I explained how you could tap into the equity in a single investment property, using that equity as a deposit to buy more properties, provided that you could service the debt.
You can view that video here…
One of the great questions that came back from that video was whether you can tap into the equity in your own home to use as a deposit, effectively negating the need to draw down on those hard-earned savings.
Well, the short answer is yes.
In fact, in my first book Why Property Why Now I challenged Robert Kiyosaki’s comments that your home wasn’t an asset because of this exact strategy.
If you have owned a home in Sydney or Melbourne lately you’ll know that the value of that asset has grown between 50% and 70% (at least on paper!).
Now if you’re comfortable drawing down on some of that equity (and that’s a big IF… this is the family home after all!) then the home can carry a lot of potential in being able to give you a leg up into your next investment purchase.
All you have to do is simply draw down on the equity to either fund the deposit or the whole purchase and, provided you can service the debt safely, you can leverage into multiple investments and start building a sizeable portfolio for yourself and the family.
This can be a great strategy if you have identified some great opportunities in the market but don’t want to draw on savings which may already be ear-marked for holidays or school fees!