HOW TO use Equity to buy Property in Australia | Personal Finance - Real Estate Investing Australia

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[erlan]

You're one of the best vloggers of real estate, I tried watching other videos but their explanation is just so hard to understand. Maybe its the way you speak, very clear and easy to understand. Thanks for sharing all your videos. I am now a subscriber.

[shielapancho]

This is too good Ravi. Can you please make a video on Exit Strategy. Thanks!

[ninasnook]

awesomje video helping to understand a really difficult concept !!

[sjshar]

Awesome video! So informative and clearly explained 😊

[hansel]

love your content! looking forward for your next videos

[wellerandre]

Good content mate..i reckon you've been watching Graham Stephan and Andrei Jikh editing looks very similar haha

[TheRushour]

Thank you for the advice. Can I use my parents property equity to buy an investment property ?

[vikasarora]

Hey Ravi. Is it good to max out the equity available while house prices are up? I have no current plans to buy an IP yet but might plan later but wanted to secure max equity which is now.

[ricfraser]

So then how much equity would you need to buy another $300k house? Would the one property allow you to buy another house in 18 months given growth continues?

[JoseDownUnder]

Is it wise to take out the equity if I plan to buy another house (for eg upgrade from existing home to a bigger one) say after 4-5 years (considering house prices are decreasing now) ? how to avoid paying interest for this equity amount ?

[rickyarfi]

Would tenants paying your existing loan be enough “ extra income “ to take on further debt ? Please help a newbie out here

[stefanosmihelakis]

hey Ravi, i've been watching your videos and they've been very eye opening! thanks for that! Question, can you take out equity and put it in an offset account against your loan so you pay very low interest rate? So really in a away park the money there for as long as possible with out using it? Thanks In advance!

[davidt]

I think it's the way it is explained. It's easier to say, "Just think that the bank will let you have a max debt total of XXX, aka 90% of your property value that you are borrowing against".

The max debt immediately triggers the calculation of the left over 'equity balance' aka what you're calling 'useable equity', that can be borrowed.

So lets say, regardless of anything extra, at it's simplest:

You go get your property value assessed - it is worth $700k, doesn't matter how much you owe on it etc, the bank will allow a maximum debt of 90% that you can borrow up to, you then see how much more debt you can get based on the debt you already have.

[easemailboxes]

H ow to find an ethical property investment adviser?

[Rekke_yt]

Thank you so much Ravi what an incredible video . Appreciate it . By the way your sound effects are a bit too loud relative to your voice . Thank you for such an insightful video 🐐

[OrdinaryManSisu]

One thing to remember folks, if a bank says we can give you 90% of your equity, just remember never cross collateralise your principal place of residence. If market goes south and you can't service the loans the bank will force you to see your house even below market price to get their money back!

[varunimdr]

How will we pay the EMI and interest on a new home?

[gregorywatkins]

Cash out refinancing on a investment property

I own an investment property that is rent out. The current mortgage is $477k. I am looking to purchase a second investment property and trying to work out the best way to arrange the financing and the tax implications. Wondering how the tax deduction for interest would work if I were to refiance the mortgage on the first investment property to withdraw some of the equity. Would I be able to claim the full interest on the new loan, or would I have to split the interest into investment and equity. Eg. if the current loan is $477K, I take out $60k in cash for second investment property deposit, would I be claiming the interest on the $477k only (87% of the interest on the new loan) or on the $537k total (100% of the interest on the new loan)?

[tonyaquino_photography]

Hey mate love your Chanel👍🏻 my question is tax!
If you strive to own the property with no debt you positive rental income will be taxed as income🤷🏻‍♂️ so would it not be better to never own the property and take tax free money as income but obviously leave a buffer of equity for up and down markets in the future? What are your thoughts

[henrynguyen]

Youd actually need to have an increased salary for this to work if youre taking on multiple mortgages.