Your Gold Coast home could be the key to starting your property investment portfolio. This guide explains what home equity is and provides a step-by-step process on how to access it through refinancing. Learn how you can use your equity as a deposit to buy an investment property, potentially without needing any new cash savings.
Did you know that the biggest financial asset you own might not be your savings, but the very home you live in? The significant property growth across the Gold Coast in recent years means many homeowners are sitting on a hidden treasure: home equity.
This equity is the key to starting your property investment journey. This guide explains how you can unlock it to build your wealth for the future.
What is Usable Equity? (A Simple Explanation)
First, let's quickly define equity: it's your property's current market value minus the amount you still owe on your mortgage.
However, the key figure for investing is your usable equity. Lenders will typically allow you to borrow up to 80% of your property's value. Your usable equity is the difference between that 80% threshold and your current loan balance.
- Example:
- Your Gold Coast home is valued at: $1,000,000
- 80% of its value is: $800,000
- Your current mortgage balance is: $450,000
- Your Usable Equity = $800,000 - $450,000 = $350,000
This $350,000 is the powerful resource you can potentially access.
The Process: How to Access Your Equity
Accessing your equity is a straightforward process when managed by an expert.
- Get an Accurate Property Valuation: The first step is to get an up-to-date valuation of your home. We can arrange this through the banks.
- Conduct a Full Financial Review: We'll review your current home loan, your income, and your goals to ensure that accessing your equity is the right move for you.
- Refinance to "Cash-Out": The most common way to access equity is by refinancing your existing home loan. You take out a new, larger loan that pays off your old one and releases the extra funds (your usable equity) as cash.
Using Your Equity as a Deposit
The funds released from your refinance become the deposit and purchase costs for your new investment property. This means you can potentially buy an investment property on the Gold Coast—whether it's a high-growth house in Coomera or a high-yield apartment in Southport—with no new cash savings required. This is the strategy that most Australians use to begin building a property portfolio.
As your finance specialists, we not only help you access your equity but also structure the new investment loan correctly to maximise your potential returns.
Helpful links.
Ready to get started?
Start applicationLet’s chat today to find the right solution for you.
Let’s chat today and find the right solution for you. Whether you’re buying your first home, expanding your business, or upgrading your vehicle, Maxine and the Max Rich Brokerage team provide expert, obligation-free guidance across the Gold Coast, Logan, Brisbane, and the Scenic Rim, tailored to your goals.
Related articles that may interest you
Boost Your Bottom Line: 3 Investments to Supercharge Your Gold Coast SME's Productivity
Looking to make your Gold Coast business more efficient and profitable? This guide outlines three key investments that can supercharge your productivity. Learn how upgrading your technology, investing in new equipment, and improving your workspace can boost your bottom line, and how smart finance can make it happen.
The Investor's End-of-Year Review: 5 Questions to Ask About Your Gold Coast Portfolio
As the year ends, it's time for a strategic review of your property investment portfolio. This guide provides five critical questions every Gold Coast investor should ask about their loans, equity, and cash flow. Use this checklist to review your performance in 2025 and create a powerful financial strategy for 2026.
Airbnb vs. Long-Term Rental: A Gold Coast Investor's Dilemma
For a Gold Coast property investor, what's the better strategy: a high-yield Airbnb or a stable long-term lease? This guide breaks down the pros and cons of each approach. We analyse the income potential versus the effort required and explain the crucial, often-overlooked difference in how lenders view the income from each strategy when assessing you for a loan.