When to access equity

I recently got a call from a client who found a property he really liked and the only way he could get this property was to make an offer with no finance clause (this usually happens in a hot market) 🔥⁠

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He was scrambling to arrange finance and was desperate for me to assure him that everything will be ok.⁠

Usually, there is no issue – except when there is a large reliance on access to equity from another property.⁠

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Ideally, funds would have already been accessed from the existing property they have to cover the deposit. ⁠

This saves stress and a lot of time 😬⁠

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For those serious about investing, it’s a good idea to access equity and have it available for when you do need it. Here’s why: ⁠

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1️⃣ If you come across the right property and are ready to purchase, there won’t be anything obvious holding you back. ⁠

2️⃣ You are also in a better negotiating position having already sought the equity to pay for the deposit usually means a quicker finance approval given the hard work is done. ⁠

3️⃣ It can take anywhere from 6 - 8 weeks for the equity release to be completed. If it is an internal refinance with your current lender then perhaps sooner but longer if it’s an external refinance with another lender. ⁠

4️⃣ A lenders policy may change from time to time especially in the current environment. You may be able to access equity from your current lender today but tomorrow their policy could change!⁠

5️⃣ And finally, if correctly set up you can have the funds readily available with no interest to repay until you start using it.⁠

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If you would like to discuss various financial strategies investors use - feel free to contact us for a FREE no-obligation consultation on 0417 292 780 or ⁠

morgan@fullcirclefinance.com.au