Wondering how to use your refinancing capital?
1. Home improvement
How many times have you watched the TV show, The Block, and said ‘I could do better’?
There’s a small part inside us all, (some smaller than others), that thrives on home improvement. A new kitchen, ensuite bathroom, entertaining area or garden revamp can make an enormous difference to your lifestyle and potentially add thousands in value to your property at the same time.
If your home’s feng shui is throwing off your balance, consider refinancing* your loan to allow for renovation money to be advanced. You’d be surprised what you can do with even just a small amount of equity in your property.
2. Get yourself an investment property
Get smart with your equity and start thinking about the future. With property being one of the less volatile, more straightforward investments out there, it can be a great idea to explore if you’re looking to invest home equity and build wealth.
Refinancing can give you the chance to access that equity. Ever wonder how some people are able to purchase fancy investment properties rather than the tiny shack with a termite problem that seems to be in your price range? Leveraging home equity can work to increase your borrowing power. First things, first though! If you do want to refinance so you can access equity in your home, the most important thing is to get your home valued. Lenders use the current value of your home to determine how much you can borrow and you never know… your nest egg could be a lot bigger than you thought.
Hopefully now you can see how refinancing could bring financial security and significant long-term gains (and also other nice things like holidays, new kitchens and beach houses). Still not sure exactly which option is right for you? with a to get the ball rolling.
*Refinancing is subject to various lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements
As with any financial scenario there are risks involved. This information provides an overview or summary only and it should not be considered a comprehensive analysis. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs.