Finance & Fury Podcast

Welcome to Finance and Fury Today we have Jayden here, and we will be talking about using your home for as an investment and as a forced savings account. You can start turning the bad debt into good debt. Through paying down the loan quicker, and then redrawing on the equity. You can save interest along the way and the redraw for investment is now deductible. What is home equity? Simply put, it’s the difference between the value of your home and the value of your home loan But you can’t borrow all of the equity in the property If the value of your property increases so does your equity How to create home equity faster? Get another bank valuation, sometimes the valuers themselves put value in different things. Bank valuations and market valuations are different Get a shorter loan term, creating some forced savings There are larger monthly repayments for a shorter mortgage term You end up paying less interest with a shorter mortgage term See table below assuming a loan of 450k with 4% p.a. Fix up yo