Written by Kodie Axelsen
Are you holding the yearly Christmas festivities at your home this year but it’s just not up to scratch? Would you love an outdoor area for entertaining, some extra bedrooms for interstate guests or a pool to keep the kids cool after that deadly game of backyard cricket (let’s not lie, we all have that one family member that thinks they’re Don Bradman. Cool your jets, Don! It’s supposed to be fun!)?
With recent interest rate drops and local real estate values holding strong, now is a perfect time to draw equity on your home for those renos you’ve been wanting! I can hear your minds ticking over with excitement of all those Pinterest boards you have going! Don’t worry, I feel ya!
Now let’s get down to business…..
First off, how significant are your renos going to be? If you are doing the almighty knock-down and rebuild the whole back half of the house then chances are you’ll need build plans to be valued by a registered valuer.
This is called an “on completion valuation” where the bank bases their lending on the value of your home when its completed. The bank will want to control these funds and will release money per invoice payable to the builder. These are called “progress payments.” This reduces the lender’s risk of funding too much money at any stage of the build.
If you are not going all out and you just need tens of thousands to get your renos done then you may be able to use the equity you already have in your home. This is just a simple lend against the value of your home as it is now. In this case the bank does not need to control funds as they already
hold the equity in your home. They will disburse funds straight to you to spend as you please.
WINNING!!!
If you have any questions at all around accessing equity in your property please don’t hesitate to call the office and have a chat with myself or my team. We will be more than happy to guide you in the right direction.