You're Sitting on $240k in Usable Equity: Here's How to Use It

The average Perth home gained around $220,000 in value over the last 12 months, and most owners can't see it or touch it because it's locked inside their property. In this episode, Michael sits down to walk through exactly how to pull that equity out and turn it into the deposit for your next investment property, step by step with no jargon.🔔 Subscribe & leave a comment with your questions — we build episodes around what YOU want to know.General advice only and not personal advice. CRN 485467---------------------------------In this episode:What equity actually is, explained as one simple sumWhy you can only use up to 80% of your home's value, and what "usable equity" meansHow cash actually comes out of your home through a valuation and loan top-upHow equity becomes a deposit without touching your savingsWhy your income and serviceability still matter, even with equityHow to structure two separate loan splits to protect your tax positionThe deductibility changes since the budget for established homesWhy the cash-out loan should be interest-only with a linked offsetWhere debt recycling fits in and the cautions before you borrow more---------------------------------Subscribe:https://www.youtube.com/@ThatBackyardPropertyPodcastInstagram:https://www.instagram.com/backyardpropertypod?igsh=MWhkOWx5YzJxdDc3ag==Website: https://tuskfinance.com.auConnect with Michael:Facebook: https://www.facebook.com/tuskfinancemkInstagram: https://www.instagram.com/mortgageswmichaelLinkedIn: https://www.linkedin.com/in/michaelkillinerTikTok: https://www.tiktok.com/@backyardpropertypodcastTusk Finance: [email protected]:(00:00) Why you may be sitting on more money than you realise(00:48) What you'll know by the end of this episode(01:20) What equity actually is: worth minus what you owe(01:50) The 80% ceiling and your usable equity(02:50) How equity becomes cash: the cash-out or top-up(03:16) The four steps: valuation, loan increase, funds, deposit(04:05) Buying without money out of your pocket(04:40) Why loan structure matters so much for tax(05:05) Loan one vs loan two: home loan vs investment borrowing(05:50) Why keeping the splits separate protects deductibility(06:30) The cautions: bigger debt, your home as security, falling values(07:35) Pulling it all together: the golden rule(08:15) Why the cash-out loan should be interest-only with an offset(09:10) Deductibility changes since the budget(09:40) Neutral gearing and what you can claim against rent(10:40) Debt recycling and where to learn more(11:00) Final reminders and wrap-upProduced by Podwave Studios: https://www.podwavestudios.au#EquityRelease #PropertyInvesting #PerthProperty #UsableEquity #InvestmentProperty #MortgageTips #CashOut #DebtRecycling #OffsetAccount #TaxDeductible #PropertyPortfolio #HomeEquity #AustralianProperty #MortgageBroker #NegativeGearing #LoanStructure #PerthRealEstate #FinancialEducation #BuildWealth #PropertyPodcast