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NovaStar Finance

Phone: 1300 6682 71
Fax: 1300 138 187
Email: sales@novastarfinance.com.au

Property Investors

Property Investors

If you own a home then you've probably heard the term, home equity loan, or home equity line of credit, but perhaps you really don't understand the meaning. No problem, you are certainly not alone.

Financial terms like home equity or second mortgage, can be challenging. So, here is a quick explanation on equity and how it applies to you.

Basically, equity is the value of something you own, like a car or home, minus what you still owe on it. Think of it as what you can put in your wallet after you sold the item and paid off the loan.

Here's a quick visual example. Let's say you own your home and it is currently worth $175,000. You have a loan balance, or mortgage balance, of $100,000. The equity in your home would be $75,000.

Of course, with every payment you make on the mortgage, the less you owe on the loan, and the more equity you'll build up.

This sounds great, but remember, in the beginning you will always be paying more in interest charges than on the principal balance.

It's only later that you will really begin building up equity in your home. Of course, if housing values continue to rise you'll build up equity that way too.

The worst example of equity is with a new car. Because of how quickly they depreciate, cars rarely have any equity value after the loan is paid.

Property Investors

So, when you hear someone talking about a home equity loan, you'll now have a better understanding of what they're talking about.

So now that you've built up enough equity in your house or your business you can start thinking about making some astute investments and even building your own property portfolio.

Every week hundreds of Australians become Property Investors and put on their "Landlord's" hat, and many people say that this the road to financial security and financial independence.

Nova Star can help you structure and arrange your finance for your property investment in the most effect way.

Often our Client's ask us to work with their Accountant or Financial Advisor to achieve the best outcome for their investment.

Nova Star can arrange Full Doc or Lo Doc loans.

We can arrange split accounts to identify portions or accounts within the overall loan package to achieve the most effective result for our Client.

To many, when they first dip their toes in the property investment pond, they feel that they are bombarded with different types of terminology:

Property Investors

Nova Star have complied a "Glossary"; and explanation of all these different terms.

So, don't be confused; simply contact us here at Nova Star as ask for our FREE GLOSSARY OF FINANCE TERMS.

Contact Nova Star NOW on:

1300 NOVA 71

(that's 1330 668271)
or email Julie at julie@novastarfinance.com.au.

Nova Star Finance is a leading Australian mortgage and finance broking firm. The company is headquartered in Brisbane, Australia. Investors in all types of property will find their finance solution at Nova Star. Nova Star provides finance for property investors in residential property as well as commercial and industrial property with both first and second mortgages. Nova Star also provides or arranges loans for first home buyers, small business owners, and low doc loan applicants. Applicants with poor credit history can be accommodated.