Manningham Region Property Rises
The Sacrificial Lamb Strategy.
Recent article in the Manningham Leader on 31st October, http://www.heraldsun.com.au/leader/east/eastern-suburbs-share-spoils-of-property-growth-in-melbourne/story-fngnvlxu-1226749633660 mentions the regions property prices on the up in most suburbs. Park Orchards, Doncaster East, Templestowe, Warrandyte and Manningham all getting a mention. This has provided many home occupiers opportunities they have not thought about.
Increasing equity on your Family Home is fantastic news for any owner, but this extra growth is only realised if you sell. Equity for most home owners is only truly seen if they create it by decreasing their Debt. I have seen many clients have it in both hands, that is, utilising the extra growth in their property to decrease debt further and at a faster rate.
Clearing the mortgage on the Family home provides comfort in future retirement, eases cash flows or stability knowing it can not be taken away. One strategy clients have used is the "sacrificial lamb"! Clients purchase an investment property with the one and only goal of when it increases in Value, selling it to clear the debt on their Family Home.
This needs to be done with careful consideration as an incorrect decision can be disastrous. Careful thought needs to be taken, with consideration to Taxation, Names on Contracts, Property Type, Property Location, Property Cycles, Interest Rates, Loan Structure, Borrowing Power, Level of Debt, Depreciation, Insurances, etc.
If you give me a call I am happy to help you investigate this option, without any cost to you.