Is your Mortgage Paid Off? or is the end nearly in sight , if so, what are your next steps?
With our clients, it’s common at this time to take this opportunity to set new financial goals and to consider investing in property again using their equity.
Here are some tips to utilise your property equity effectively:
- It’s an important time to look at correctly structuring your loans. Ensuring each property stands alone for example (so not cross securitised) - this has distinct advantages and allows you to be nimble should you need to move your loans to take advantage of improved low interest rates or bank policies.
- Get your ducks in a row by extracting equity from the property before making an offer on a proposed investment property. By being prepared you can utilise this position to negotiate a great purchase price.
- Pay down your owner occupied loans first. By working with your accountant this can also help to minimise having any non tax deductible loans.
- Ensure you have a robust property investment plan in place to ensure any investment meets your long term goals.
Another important tip is figuring out what to do with the money every month that would have gone to your mortgage. Reallocating it into savings and investments rather than spending will assist in making your future and retirement better.
While there are no secrets to paying off a mortgage, having diligence and discipline will get you there.
At Focus Property Wealth we love working with clients to plan for your future. If you would like a no obligation, complementary consultation to discuss your situation and how we can help contact our team today on (08) 6162 6577