Equity Take out and re-investment

Leveraging equity in your home, or equity from another property investment, can be an effective way to buy an investment property. Equity is the amount of money in your home that you actually own. It can be calculated by working out the difference between what your property is worth and what you owe on the mortgage. For example, if your home is currently worth $1,000,000, and you have $250,000 remaining to pay off on the mortgage, you have $700,000 worth of equity. Also, using the equity in your existing home sometimes can allow you to borrow more money against your investment property, which will increase your tax deductions.