Equity Release
for Property Investment

Australian homeowners are sitting on untapped stockpiles of equity, thanks to years of rising house prices. At GPFG, we offer investment solutions that allow them to tap into that equity, and turn it into passive income and cash in their pockets.

What is Equity Release

The concept behind equity release is to provide homeowners with a way to access the equity they have earned in their homes, as their home’s value has increased due to capital appreciation. This can be particularly useful for those who might need extra money to cover expenses, fund home improvements, or help family members, for example.

Equity Release with GPFG

Our GPFG clients are using their equity to fund cash-flow positive property investments, which generate positive return and passive income. This is an appealing option for those looking to expand or diversify their investment portfolio, as well as seeking additional income streams.

Equity Release for Property Investment & Wealth Creation

Equity release can be a pivotal element in a wealth creation strategy, especially beneficial for homeowners who have built up a substantial amount of equity in their homes. This approach enables homeowners to unlock the financial potential of their property, using it to bolster or diversify their investment portfolio and overall financial standing.

The key benefits include:

Access to needed cash for deposits or investments

Access the wealth tied up in your primary residence without needing to sell. You can then convert home equity into liquid capital for further investment and generating rental income.

Portfolio diversification

When you unlock your equity, you can use the additional cash to invest in various property types, spreading risk. This also enhances your investment portfolio by adding more assets.

Generating additional income streams

Use the released equity to purchase rental properties, creating a steady income. You can also Benefit from potential rental yields, which can supplement other income sources.

Capitalising on property appreciation

Now that you have built up equity in your primary residence, you can use it to do the same again with an additional property. This can help pay a deposit or purchase in other markets or properties with high growth potential. You can then benefit from long-term capital gains as property values increase.

Leveraging investment potential

You can also leverage existing property equity to expand investment opportunities. This increases your investment power without additional cash outlay.

Enhancing retirement planning

Building wealth for a comfortable retirement is the end goal. Use equity release now, to supplement retirement savings with income from investment properties. This helps to create a more robust financial cushion for retirement.

Tax efficiency

As you may already know, there are plenty of tax benefits and deductions with property investment. When you unlock the equity to invest in property, your tax advisor can help you maximise your tax deductions, such as depreciation, insurance premiums, and management fees.

Flexibility and control

You can choose the type and location of investment properties. Furthermore, with GPFG, you also have the option to invest small amounts, with fractional property investment. We have an entire team of qualified, experienced advisors and experts to assist you, but you maintain control over your investment decisions and strategies.

With GPFG, Start Earning 8% Immediately

When you invest with our Premium Partners, you earn 8% Interest Paid During Construction. This means you can unlock your equity to earn cash back right away, even before the project is fully operational. Once the development is complete and begins generating rental income, your investment continues to yield profits. It's a seamless transition from construction to operation, ensuring your investment starts working for you from day one

How does Equity Release work?

Leveraging Home Equity for Profitable Property Investments Using the equity in your home can be a smart way to invest in cash-flow positive properties. For our example, we can use the high-demand area of Bali, where tourist rentals drive steady returns all year round. Here's a step-by-step guide on how this process works:

STEP 1

Equity Valuation.

First, determine your home's current market value and subtract any outstanding mortgage to find your available equity. Equity Calculation: Equity = Current Property Value - Remaining Loan Balance. For instance, if your home is valued at $900,000 with a remaining mortgage of $400,000, your equity would be $500,000 ($900,000 - $400,000). Remember, as property values rise, so does your equity. If you bought your home for $750,000 and it's now worth $900,000, that's an additional $150,000 in equity due to market appreciation.

STEP 2

Exploring Investment Opportunities.

Connect with our team to explore investment options within your budget. We offer various properties in Bali’s prime tourist locations, including modern apartments, luxury villas, and hotel rooms. We also provide fractional investment opportunities, starting from 25% ownership, or about AU$78,000, allowing you to enjoy the benefits of property returns and complimentary stays.

STEP 3

Refinancing to Access Equity.

To utilise the equity identified in Step 1, engage with a professional mortgage broker (we have experts at GPFG!) to refinance your home loan. This step involves borrowing against your home’s equity, which frees up the capital needed for your Bali investment.

STEP 4

Generating Income.

Once your investment is finalised – paperwork and payments completed – you'll start earning an income. Our Premium Partners offer an immediate 8% return during the construction phase. Post-completion, the expected returns typically range from 14-18%, varying with the chosen property.

FAQs on Equity Release

What types of properties can I invest in through equity release?

With GPFG, you can invest in a range of properties, from modern apartments to luxury villas, especially in high-demand areas like Bali. We also offer fractional investments, making it accessible for different budget ranges.

How do I know how much equity I can release from my home?

Your available equity is calculated by subtracting any outstanding mortgage from your home's current market value. Our GPFG experts can guide you through this process and connect you with reliable brokers for accurate valuation.

How does equity release impact my current mortgage?

Equity release often involves refinancing your current mortgage. This can change your mortgage terms and potentially your monthly payments. Our GPFG mortgage specialists can provide detailed insights on how this might affect your financial situation.

What are the costs associated with equity release?

Situations will vary, but in most cases the costs are similar to refinancing, which typically include the application fees for new loans, property valuation fees, new mortgage registration, and then your new loan costs will vary on current mortgage rates and repayment terms. Our team is happy to help you with quotes and full review of your mortgage and financial situation so that you are well prepared and aware of all costs beforehand.

How long does the equity release process take?

The process can vary in length, typically taking a few weeks to a few months. It involves property valuation, advice sessions, and refinancing. Our GPFG financial advisors work efficiently to streamline this process for you.

How does equity release affect my current wealth and assets?

Equity release increases your liquid assets by turning home equity into cash, useful for investments or expenses. However, it reduces your home's equity, affecting your asset value. Properly reinvested, this can potentially increase your overall wealth. At GPFG, we guide our clients to ensure equity release aligns with their financial goals.