YOUR HOME. YOUR NEXT PROPERTY GOAL.

Understand the starting point.

Equity is the difference between your home's value and the amount owing against it.

For example, a $700,000 valuation less a $400,000 loan leaves $300,000 in equity.

The amount a lender may let you access depends on its valuation, lending criteria and assessment of your ability to repay.

Ask your broker to confirm the available funds, loan structure and ongoing repayments before setting a purchase budget.

This example explains the arithmetic only: total equity isn't an approved borrowing amount.

Confirm the valuation and lending options.

Your lender's valuation establishes the value it will use for the application.

Your broker can compare a loan increase, refinancing or another suitable facility, including fees, security and repayment terms.

Ask for the amount available after existing debt and lending costs, with a separate allowance for the next property's deposit and purchase costs.

Check the combined repayments and cash flow.

Review the home loan and proposed investment loan together, including higher-rate scenarios and any change from interest-only to principal-and-interest repayments.

Build a property budget using supported rent estimates and allowances for vacancy, repairs, management, rates, insurance and strata charges where relevant.

Agree a cash reserve with your advisers that fits your income, commitments and the property.

Give the next property a clear role.

For many established homeowners, the question is how a new investment fits with family life and longer-term plans.

Think through the purpose of the purchase, how involved you want to be and what ongoing costs you can comfortably carry.

I can then turn the confirmed budget and property goals into an acquisition brief.

Keep the right advisers involved.

Your broker handles the lending discussion, while your accountant and qualified financial adviser can assess the tax and financial planning implications.

Your conveyancer advises on the contract and ownership arrangements.

My role is to help research, assess and acquire a property that fits the brief you've established.

General information only, not financial, tax or legal advice; have your qualified advisers assess the proposed structure, repayments and security over your home before proceeding.