Leveraging your investment property is a potent strategy for maximising returns, and at Invest Realty Australia, we’re experts in helping you amplify your investment power. By strategically utilising debt, you can significantly enhance the purchasing power of your equity. This approach allows you to acquire more properties, diversify your portfolio, and ultimately accelerate your wealth growth.
At Invest Realty Australia, we understand that leverage involves borrowing funds to invest in an asset, using your existing equity as security. This method aims to multiply the returns on your equity by acquiring more investment properties than you could otherwise afford outright. For example, if you own a property with significant equity, you could refinance or draw on that equity to secure a loan for additional purchases. This strategy is a cornerstone of our advice at Invest Realty Australia.
Understanding the optimal loan-to-value ratio (LVR) is crucial. Invest Realty Australia emphasises selecting an LVR that ensures the rental income from your properties comfortably covers mortgage payments, maintaining positive cash flow. This financial cushion is vital for managing debt obligations effectively and is a key part of our strategy.
Consider this leveraging example, facilitated by Invest Realty Australia: By investing $200,000 cash into an $800,000 residential investment property, you leverage your initial investment by borrowing an additional $600,000. This enables you to control a full $800,000 asset.
With the property’s value potentially increasing at an average annual rate of 6.8%—the national average over the past two decades in Australia—you could see your property appreciate to approximately $2,146,144 after 15 years. This scenario would turn your initial $200,000 investment into a return of about $1,346,144, an impressive 673% increase over 15 years.
Invest Realty Australia specialises in identifying prime residential property opportunities and devising financing strategies that optimise leverage. High rental yields and strategic locations ensure that our investment properties not only provide consistent returns but also appreciate over time. As your equity grows, so does your ability to leverage further investments.
To explore how leveraging can enhance your investment portfolio, contact us today.
Let us help you turn your investment dreams into reality.
