The Property Podcast ASK445: How do I convert growth into cash? PLUS: Can I get my lender to recognise improvements I've made?
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Sep 10, 2024 On this episode, the hosts delve into how to transform capital growth from a property portfolio into accessible cash. They weigh the benefits of selling assets versus leveraging equity for wealth extraction. Additionally, they discuss how homeowners can boost their property's valuation through renovations and how to effectively navigate mortgage revaluation processes. Listeners learn about refinancing options and the value of consulting a mortgage broker for personalized guidance.
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Extracting Wealth (Simple)
- To extract wealth from a capital growth-focused portfolio, sell a property and reinvest some of the proceeds.
- This allows you to access built-up wealth while maintaining some income generation.
Extracting Wealth (Leveraging)
- Leverage your property wealth by borrowing against it instead of selling.
- This lets you access funds tax-free while retaining ownership and potential future growth.
Refinancing After Improvements
- Request a revaluation from your mortgage company after property improvements to potentially borrow more.
- Consider a further advance on your existing mortgage or refinancing for a new mortgage at a higher value.