04 Jan Unleash Your Hidden Wealth
February is here, life has settled back into a steady and predictable routine for most of us. We start to get very busy with all the necessary nitty gritty in life. We tend not to reflect on what goals we have set in the new year and what actions we need to take to make them happen. You may also have a fear to take forward steps and realise some of your financial goals. Often when we don’t have enough reliable information and we let that hold us back.
Many people that have equity in their home are afraid to use that equity to purchase an investment property. They think something will go wrong and lose their home. However the same could be said if you don’t do anything. What opportunities are you letting slip away by letting mostly unnecessary fear stop you?
In simple terms, equity is the unrealised value in an asset. For example if your home is worth $425,000 and your mortgage is $250,000, you have equity of $175,000.
Of course if you decided to sell your property tomorrow, you would have less than $175,000 in the hand: once real estate commission, legal fees, advertising and other selling costs are taken into account, you can reduce that figure by around 10 per cent. That’s why it can be smarter to tap into your equity and successfully leverage your funds into an investment, without selling your property.
To do so, it is vital to have the correct mindset, which means education yourself about the risks involved, so you can mitigate your fears and invest with an open mind.
When that fear factor creeps in, it can be very crippling for the inexperienced and faint hearted. If you don’t overextend yourself financially, using your home equity can help you fast track your wealth creation goals
To help you take the first brave steps towards nudging your fears and doubts out of your way, take a look at the following tips.
- Educate yourself to feed and strengthen your mind. This includes everything from books and podcasts to attending seminars on property investment.
- Mingle with likeminded people and surround yourself with people whom are going in the same direction as you. Those friends who want to remain will do so.
- Have an exit strategy if the plan isn’t working and don’t be afraid to get help if you don’t know what your next move should be.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Here at Advanced Finance Solutions we have two very friendly, professional brokers at hand to help you make the best decisions on what is available for your individual situation. Please call 02 4919 0478 and book an appointment to get advise plus there is no charge for this service.