The truth about equity

One advantage of investing in property is its high leveraging potential. Leveraging means borrowing money to finance an investment.

In real estate terms, it’s accessing the equity you’ve built up in your property to help finance another property. Leveraging allows you to purchase more property than you could otherwise afford.

But it’s not easy.

The reality is that leveraging has a lot to do with timing. Property investment cycles are influenced by a range of variables, so there are times when different levels of leverage are appropriate.

As demand for property goes through highs and lows, it’s important to be able to anticipate when to leverage up or down.

So make sure you seek out professional advice before putting your plans into action

This story The truth about equity first appeared on St George & Sutherland Shire Leader.