Revalue at the Peak of the Cycle
15/08/08 22:59
Some experts are suggesting we're going to have a
slump in prices in residential property. Some are
suggesting it's already happened.
One thing is for sure, we're currently at the top of the cycle. So now would be a good time to revalue and properties you own and pull out the equity ready for the next purchase.
If the market does turn, it will only get harder to access any equity you have sitting there.
You can get your house revalued by the bank and access the equity without having to re-finance (unless you change banks).
For example, if your house is worth $600k, and your mortgage is $400k, most banks will lend you up to 90% of the value of your home which in this case would be $540k. Since you already owe $400k, the difference $140k ($540k - $400k) can be borrowed and put into a Line of Credit (LOC) or taken as an Equity Loan for when you may need it. You may choose to use this as a deposit on an Investment Property or for Shares, or simply as an emergency buffer.
Now is a great time to look an re-valuing, you never know it might just give you that start you need to begin your investing.
One thing is for sure, we're currently at the top of the cycle. So now would be a good time to revalue and properties you own and pull out the equity ready for the next purchase.
If the market does turn, it will only get harder to access any equity you have sitting there.
You can get your house revalued by the bank and access the equity without having to re-finance (unless you change banks).
For example, if your house is worth $600k, and your mortgage is $400k, most banks will lend you up to 90% of the value of your home which in this case would be $540k. Since you already owe $400k, the difference $140k ($540k - $400k) can be borrowed and put into a Line of Credit (LOC) or taken as an Equity Loan for when you may need it. You may choose to use this as a deposit on an Investment Property or for Shares, or simply as an emergency buffer.
Now is a great time to look an re-valuing, you never know it might just give you that start you need to begin your investing.