The big banks have recently raised interest rates for owner-occupiers, leaving many feeling nervous.
The banks say they need to pass some of the burden onto customers due to tougher regulations.
There are differing opinions for and against the banks’ decision; some believe higher capital requirements make the system safer – something that consumers will ultimately benefit from.
Some believe the changes will have a psychological impact on potential buyers and dampen confidence – which will lead to increased opportunities for savvy buyers.
Whatever the outcome of the rate hike, it’s your responsibility to prepare for any eventuality – including a downturn in the market.
This means locking down your equity to ensure you’re protected.
If you own your own home or an investment property, you have equity.
Simply put, locking down your equity means securing the value of your home and leveraging it for future investment.
In the current climate, property prices are going gangbusters, but what happens if a sudden downturn in the market strips value from your property?
To be prepared for this eventuality, and to secure funds for further investment, you should think about getting your home revalued immediately, then take this fresh valuation and secure a loan.
By getting your home valued, you will have a clear indication of your home’s worth right now and the power to refinance based on this equity.
So I’ve got some cash in my back pocket – what now?
You can either start looking for new investment opportunities or sit on your cash and wait until the market changes.
Your strategy is as unique as you are but the key here is you must have a strategy.
If investment is your goal, you need to make sure you have a plan in place to maximise the additional equity you’ve secured.
If you want to talk about refinancing or would like direction around your investment strategy, book a complimentary consultation.
Simply call 1800 600 890 or email admin@wefindhouses to book it in.