There is more to refinancing than meets the eye.  Let’s look at the three main drivers behind refinancing:

1. Debt consolidation.
2. Better interest rate
3. Release of equity

Let’s look at the release of equity. Most of my refinancing activity comes through my investor clients. Investors are starting to fill the gap that was created by first home buyers. They are building a little bit of equity in their property and then refinancing so that they can buy another property.  It is like “leap frogging” into the next property.  Your equity provides the deposit and costs for the investment property. These funds are tax deductible, as it is the purpose of the funds that the ATO looks at rather than the security offered.

Releasing equity is a great way to start building your property portfolio.

If you have property in Lake Macquarie, Newcastle, Cessnock, Maitland, Central Coast or Port Stephens  and would like a no cost Rp Data property report just follow the link below

 No cost Rp Data Property Report

Comments are closed.