Do you think your dreams of becoming an investor are out of reach because you don’t have the necessary capital? You may be surprised to know that you can use the equity in your home to finance an investment property. This is an excellent option for many people who want to invest in real estate but may not have the financial means or credit history to obtain traditional financing.

What is Equity?

Equity is the difference between the market value of your property and the amount you owe on it. So, the amount of equity you have in your home is determined by the difference between the appraised value of your home and the remaining mortgage balance.

Why Might You Want to Use Your Equity to Invest in Property?

  • The potential for capital growth can be higher than other investments, like shares
  • You can create and additional income stream by renting the property out
  • It allows you to begin building a property portfolio
  • It’s a good way to diversify your investments and build your wealth through property ownership. 

How Do You Use Your Equity to Invest in Property?

If you’re ready to begin investing in real estate, the first step is to get an idea of how much equity you have in your home. This can be done by getting a free appraisal from a professional appraiser or real estate agent. Once you know how much equity you have, it’s time to decide what kind of property investment you’re looking for.

The amount of equity you need to get started will depend on the type of investment property you are looking to secure and also the lender’s policies and requirements.

Get Your Financing in Order.

Before you start looking for properties, it’s highly recommended to get your financing in order, and this is something we can certainly help you with. As an investment property owner myself, I’ve got professional and personal experience in the market and will be able to clearly step you through the process to secure finance to begin or build your investment property portfolio.

Know the Tax Implications of Using Your Home as an Investment Property.

When using your home as an investment property, you must pay taxes on the income from that property. You can deduct expenses such as mortgage interest and property expenses – such as repairs and maintenance, depreciation of fixtures etc from your taxable income.

If you decide to sell your investment property, any profit above what was initially paid for it will be taxed as capital gains at whatever rate applies in your state.

So before embarking on an investment property venture, you should know the tax implications of doing so and speak to your accountant regarding the implications it may have for you.


There are many ways to finance an investment property, but most require capital that you may not have readily available to purchase your desired property. You can use equity from your home as an alternative option for financing, however, there are some factors that need to be considered before making this decision. If done correctly and properly researched, using equity could be a great way for you to invest in real estate without having any cash out of pocket at all! If you’d like to learn more and check your eligibility, contact me today and let’s see what’s possible!