Wealth Blog

An Approach To Creating Wealth From Equity

Many folks in the Sutherland Shire are not sure exactly what equity is, nor how to use it to create wealth.

equityFirstly, equity is just what you’ve remaining for yourself after all your loans have been repaid. The proportion of the home which you “own”, and it is a reflection of the amount of money payed off against the entire balance due. Equity essentially is produced by 3 sources (it not just a home):

  1. Real assets like a residence, stocks, collectables.
  2. Potential wealth like Superannuation, annuities.
  3. Prospective equity coming from bequest.

It’s this equity that’s the answer to wealth creation.

What Exactly Are Your Alternatives To Generate Wealth From Equity?

You can keep going as you are right now and pray that when you leave the workplace you’ve got more than enough to live on. Or you can begin preparation right now in order that whenever you cease working you’ve more than simply a pension.

Were you aware that you could use the collateral in your own home to help you or the children to obtain real estate or stocks? I have, and my children have raised their own equity through buying investment property employing collateral via my own real estate.

While they’re earning a living, developing a profession and building their cash flow – the real estate increases in value offering them equity to make use of later on. This will put them in a position to acquire their own real estate asset. Furthermore, the real estate may well be cash flow positive and fund itself.

Would it be great to merely relax and see a smart investment grow with the knowledge that at some point you may use that value.

If you are a Suttherland Shire resident, I am able to tell you about how you can create wealth through equity so that you can be financially successful in the coming years. Contact me to find out more about building wealth from equity in the Sutherland Shire.

Equity

One Comment

  • Custodian Wealth Builders on May 22, 2013 Reply

    Great article showing the importance of equity towards wealth creation. Very useful in creating wealth.

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