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Here’s how to unlock the equity in your home to invest in property


The best-kept secret about getting on the property investment ladder is that it can be a whole lot easier than you’ve been led to believe. The good news is, we’re here to bust the myths and help you navigate the possibilities for investing in new property.

Your home might be worth a lot more than you think

You’ve already done the hardest bit, buying your first home. But do you know that might help you build your next home with us? A lot of people don’t realise that owning one home already opens the potential of boosting you onto the property investment ladder. Many homeowners across Australia are so focused on paying off their mortgage that they don’t see what’s right in front of them – valuable equity.

The reality is, in this dynamic property market, now might be the perfect time to leverage the strength of the equity locked up in your home. “We’re helping would-be investors that are thinking of getting into the property market, but don’t know how or those who never realised that was an option,” says John Sheehan, General Manager of Invest by Metricon, Metricon’s newly launched investment range of house and land packages. “Just like we’re helping first-time buyers that never thought they could, build their own home.”

What is equity, and can I access it if I haven’t paid off my mortgage?

Home equity is the current value of your property (not the price you paid when you bought it) minus the amount you still owe on the mortgage. Put simply, if your property is valued at $500,000, and your remaining mortgage is $300,000, you have $200,000 in equity. The lower your home loan goes, the more equity you create.

Accessing equity is a little-known trick that some seasoned investors are trying to keep secret. It’s a common misconception that you must have paid off your mortgage in full to access your equity, but that’s not usually the case. Equity in your home builds with every mortgage repayment you make, and soon, you may be able to draw down on that spending potential to invest.

Read more on Invest by Metricon now.

“The first one’s always the hardest,” John says. “Just entering the market can be hard. But after that, once you have equity built up in that first property, you might be able to pull it out to fund the next one. So, you save the deposit for the first, and then provided the market continues to grow, you may find there’s nothing stopping you.”

And it is a domino effect once you realise the potential already locked up in your home. “We’ve found that so many people don’t understand they’re probably sitting on $300,000-plus of equity because they bought their property a few years ago, and it’s in a growth area,” John says. “Once they realise there’s the opportunity to pull that equity out and buy one, maybe two investment properties, they’re like, ‘What? Why wasn’t I doing this years ago?’”

Don’t get stuck in the weeds

It’s too easy to get bogged down in mortgage repayments and bills, looking at debt as a negative instead of an opportunity to be grasped. Focus on the potential in your home’s equity and other assets. Interest rates are historically low. Depending on your circumstances, today may be the perfect time to invest, and chances are you may not need to sacrifice your lifestyle to get where you want to go.

It’s a good idea to talk to a trusted lender about your borrowing potential. They’ll take in multiple considerations – like income, age, living expenses and existing debts – and figure out if you can tap into that equity. If they determine that you can, then it’s well worth considering investing in property. Let Metricon take care of the build process, and we’ll help you along the way.

“If you speak to your lender and it’s possible to access your equity, then the best time to buy an investment property was yesterday,” John says. “The better time than yesterday was the day before. If it’s right for you, invest when you can. If you can afford it today, build today because, in a year, you will have wished you had done it today.”

Make sure you seek financial advice

While we’ve tried to be as helpful as possible, this article should not be considered professional financial advice. It contains general information only, and you should seek out independent, professional advice on your personal situation before making any financial decisions.

If your financial adviser thinks an investment property is a good idea, based on your current financial situation, then talk to one of Invest by Metricon’s friendly experts today. We’ll remove all the stress while guiding you towards your property portfolio goal.

If you feel ready to start your property investment journey, learn more about Invest by Metricon today.

Invest by Metricon offers an end-to-end process that allows you to obtain a rent-ready, premium home in one of Australia’s leading estates, simplifying your investment journey. With new build investment opportunities across Victoria and Queensland, you're sure to find something that suits your investment strategy, no matter where you live.