But what you do have is EQUITY! Equity is the difference between what the property is worth and what you owe.

So, what do you do with equity?

Well, if the bank agrees to allow you to access your equity, you can use it for anything….Go on that overdue holiday or buy your dream set of wheels. If you are smart though, you might consider using your equity to invest.

Let’s look at an example. You bought your home 9 years ago for $900,000. You took out a mortgage at the time for $600,000 but have now paid that down and now owe $450,000. With the rise in the market though, your home could now worth $1,300,000. You now have $850,000 of equity…. doing nothing.

Now as agents, we don’t give financial advice but we can help you work out your equity position. You can then take this to your accountant or advisor, or perhaps one of our “in -house” finance partners. They may suggest that you look at buying an investment property…..or 2….say at around $750,000, and may suggest you take out interest-only loans against those homes so that it has little or no effect on your lifestyle as the rent may cover or nearly cover your payments.

You won’t get rich on rent but with Melbourne property historically doubling every 10 years or so, in a decade the $750,000 property you bought might be worth closer to $1,500,000. Now you’ll have costs and taxes to come out of that but you probably don’t mind if you’ve potentially set up you and/or your kids for life.

Please get your investment advice (and I’m more than happy to have one of our Finance partners contact you ) but if you need to know the likely value of your home to start that discussion, please get in touch with the Barry Plant team. We’d love to help you get your investment journey underway.