What if I don’t have a Deposit to buy an investment property?

When you think of a deposit, you think of cash required up front to purchase a property. Cash is not necessary when you have EQUITY in your own home.

Initial concern with using equity from the first time property investor is a natural reaction. After all, your home is your most important asset. If you were borrowing for a speculative venture like a shopping centre, ostrich farm or a new business, all of which are statistically high risk, then concern is warranted. But using the equity in your home to purchase another residential property is considered CONSERVATIVE.

As your investment property grows, you can ask the bank to revalue it, rewrite the loan, and RELEASE your family home as security. Lenders today happily advance 80% of ‘current’ value. Depending on the growth in value of your investment property, your home may be released in as little as 3 or 4 years.

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