Should I use savings or equity in my mortgage to buy an investment property?


Your home equity is untapped wealth. By unlocking it, you’re able to buy another property. You can use equity in your property as a deposit against an investment loan. If you have enough equity, you can borrow 80% of the property value without using your own cash.



Absolutely! It is very difficult to save as quickly as property growth occurs, particularly when there is rapid growth, like we saw in Sydney and Melbourne in 2015 and 2016. So buying property with cash can be a slow process.
So using available equity makes sense, and doing it again and again, accumulating multiple properties is what clever investors do, growing wealth without using their own cash.

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Belinda, should investors go slow now and see what the market does?



Not so much to go slow, but to be careful, and its more important than ever to research to find pockets/areas that still have growth potential, or at the very least, are holding steady.
Its actually a great time to buy. Sellers are more inclined to accept lower offers and buyers requests too, which is great for renovators right now, as terms can be an advantage e.g. early access ( to get quotes or begin work before settlement ).
So, its great for renovators atm., to apply the strategy of ‘making your own luck’ i.e manipulating the value of property with improvements, then flipping.



Thanks Belinda, Do you have a ebook on flipping houses and the issues to be aware of?



Coming soon… Website is and people can find us by googling 'The2Belindas"

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