The equity in your Manly home can be a valuable asset to grow wealth.
Property prices have risen strongly in Manly, and if you’ve owned your Manly property for a number of years it’s likely you’ve racked up some impressive gains in home equity.
Prices have doubled
As a guide, back in 2007 the median Manly house price was $1.295 million. Today the median price is $2.715 million. It means your home may have doubled in value over the past nine years, and that means there’s a big stash of cash just waiting to be tapped into – money that can be put to good use investing in a Manly rental property.
Using your Manly home to grow wealth makes a lot of sense. To begin with, you may be able to use equity in place of a cash deposit - though you will still need sufficient cash to meet the other purchase costs of an investment property in Manly, like stamp duty and legal fees.
Start the ball rolling to build wealth
In addition, by investing in an area like Manly that offers plenty of growth potential, your rental property will also rise in value over time. This provides further equity that can be used as a source of funding for other investments. Clearly, this makes home equity a truly valuable resource that can really fast-track your personal wealth.
Thanks to negative gearing, investing in a Manly property can also provide valuable tax savings, and this helps to make the day to day cost of owning a Manly rental property more manageable. If you’re not sure how this works, talk with the team at Mortgage Choice servicing Brookvale. We can crunch the numbers for you.
Take a long term strategy
As your local mortgage broker in Manly it’s worth pointing out that property should always be regarded as a long term asset, and it pays to be prepared to hold onto your Manly property for quite a few years.
By way of example, the latest Pain & Gain report from property research group CoreLogic shows that among Manly property owners who resold their property in the June quarter of 2016, 99% of people made a profit on the sale of their place. Even better, the average profit on sale was a whopping $661,500! Importantly, the average holding period was 10.6 years, which highlights the need to take a long term approach.
To discover more about using home equity to invest in Manly, call me today on 0409 536 097 or 02 9938 4511. Or email me at firstname.lastname@example.org.