How can property make me better off?

If you’ve built up some equity over the years, it may be time to look at the options your property may give you.

Here are four possibilities that could help you:

1. You could buy an investment sooner.
   Borrowing against the value of your home, which is one way you can access your equity. may enable you to buy an investment sooner than if you had to save the money. Owning additional assets could help you build wealth more rapidly although borrowing and investing involves risks. You will need to ensure you can maintain all loan repayments now and into the future.

   Of course, you first need to consider the risks involved. For example, it’s important to understand that when you borrow against the equity in your property your overall level of debt increases. That means you’d have more financial responsibility and may potentially risk losing your property if  loan repayments aren’t met.

2. Potential tax advantages.
   In addition to your investment potentially increasing in value over time, certain expenses related to owning the investment property, including loan interest charges, are generally tax deductible. Plus, if you choose to invest in property, you may be able to claim depreciation on certain items against your taxable income.
3. A possible extra source of income in the future.
   Owning an investment gives you the opportunity to generate an extra source of income down the track. Certain strategies can help you pay off your home loan sooner using the income from your investments but you need to find out more to see if these strategies are right for you.
4. Take the first step to get the right advice.
   While we all get tips from friends and neighbours, when a plan is this big, it’s worth talking to a financial adviser.

Using property equity to invest with can be risky, but with personalised advice from Steve May Financial Services, together we can develop a strategy to help you meet your financial goals. Start a conversation with us today.