Five ways to put your equity to work for you … believe it or not, one is to take a holiday

first_imgNathan Birch used equity elsewhere to buy this Gold Coast property for $161,000 last year and has seen its value go to $230,000. He rents it out for $240 a week.TURNING your home into an income earner for the family has become increasingly popular as interest rates hit record lows. Here are five strategies to make the most of the equity you’ve built up.Property investment group head Nathan Birch, who built up major property portfolio by reinvesting equity into further properties, said homeowners had several strategies at their disposal to put their equity to work for them.He recommended five – only two of which actually involved further funds going into property. Nathan Birch’s real estate investments includes four residential properties in Queensland. Deposit for an investment property Putting home equity up for a deposit to buy another property was one of Mr Birch’s key strategies to build a multimillion-dollar portfolio. He believed that building wealth through property was key to a passive income and early retirement. “With multiple investment properties where rent is covering the repayments, you can set yourself up for the future,” he said in a statement. “Look for properties that are below market value, have high growth potential and a strong cash flow.” The upstairs deck of the Mount Coolum investment unit that’s rented out at $520 a week. Education Using home equity to upskill and ultimately increase your salary or add value “can be another way to invest your equity wisely”. “Look for a skill gap in your current workplace where you can add value and let your employer know that you’re interested in learning a new skill.” Rest and Rejuvenation Surprisingly given all the hype of growth in household debt, Mr Birch believed that using some of that home equity for a short break can be a good thing. “It might sound counter-productive to spend a little of your equity on a short-term experience, but a short break to hit reset can help you gain a fresh perspective and clarity on what you’ve achieved and where you’re heading.” He justifies it by saying a break could help “refocus on the long-term view”. Invest in other wealth-building opportunities He said there were other investment opportunities that could put your equity to work. “Can you start a new business? Invest in shares? Invest in start-ups? Invest in new currencies?” But he said do the research and make “an informed decision about the best use of your coin”. FOLLOW SOPHIE FOSTER ON FACEBOOK FREE: GET THE COURIER-MAIL’S REAL ESTATE NEWS DIRECT TO INBOX Mr Birch paid $370,000 in 2011 for this three storey unit in Mount Coolum. He bought this Gold Coast house in 2014 for $200,000, has seen another $80,000 added to its value and currently rents it out at $250 a week.More from newsParks and wildlife the new lust-haves post coronavirus23 hours agoNoosa’s best beachfront penthouse is about to hit the market23 hours ago Renovate an existing property Mr Birch’s strategy when deciding whether to use equity to renovate a property was to ask himself “is this renovation going to make a return, will it stop me losing more money, or is it just an emotional decision?” He said it was important to know what the work was being done for and how it would help long-term goals because “not all renovations will bring a financial return”. “Do the minimum but make sure the property is kept up to standard. If you have a badly maintained property, you’ll attract bad tenants. Similarly, if you don’t repair things like faulty taps, they’ll cause you more trouble down the line.” WHAT A MILLION-DOLLAR MAKEOVER GETS YOU IN BRISBANE HOUSE SOLD FOR LESS THAN COST OF UNIT NO RBA RATE RISE FOR A GENERATION last_img

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