Using Equity to Buy an Investment Property in Perth

Want to buy an investment property but don’t have a cash deposit saved?

Many Perth homeowners are using home equity to invest in property and grow their portfolio sooner.

If your property has increased in value, you may be able to access equity in your home to use as a deposit for an investment property — without selling your current house.

How does using equity to buy an investment property work?

When your home value rises and your loan balance decreases, the difference is called usable equity. Most lenders will allow you to borrow up to 80% of your property value (sometimes more with LMI).

That equity can potentially be used for:
✔ Investment property deposit
✔ Stamp duty and upfront costs
✔ Avoiding Lenders Mortgage Insurance (LMI)
✔ Building a property portfolio faster

For example:
If your Perth home is worth $800,000 and your loan is $500,000, you may have around $140,000 in usable equity (subject to lender assessment). This figure can potentially be higher if you pay LMI. 

Benefits of using equity to invest

• No need to save a large cash deposit
• Enter the Perth property market sooner
• Potential tax benefits (speak to your accountant)
• Leverage property growth to build wealth

As a Perth mortgage broker, I help clients Australia wide, structure loans correctly, separating owner-occupied and investment lending to maximise flexibility and tax efficiency.

If you’re wondering:
🔎 “Can I use equity to buy an investment property?”
🔎 “How much equity do I need to invest?”
🔎 “Can I buy an investment property with no deposit?”

Let’s run the numbers properly.

Book a strategy session today by clicking here and find out how much usable equity you could access.

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