Show Notes
The average Perth home gained around $220,000 in value over the last 12 months, and most owners can't see it or touch it because it's locked inside their property. In this episode, Michael sits down to walk through exactly how to pull that equity out and turn it into the deposit for your next investment property, step by step with no jargon. 🔔 Subscribe & leave a comment with your questions — we build episodes around what YOU want to know. General advice only and not personal advice. CRN 485467 --------------------------------- In this episode: What equity actually is, explained as one simple sum Why you can only use up to 80% of your home's value, and what "usable equity" means How cash actually comes out of your home through a valuation and loan top-up How equity becomes a deposit without touching your savings Why your income and serviceability still matter, even with equity How to structure two separate loan splits to protect your tax position The deductibility changes since the budget for established homes Why the cash-out loan should be interest-only with a linked offset Where debt recycling fits in and the cautions before you borrow more --------------------------------- Subscribe: https://www.youtube.com/@ThatBackyardPropertyPodcastInstagram: https://www.instagram.com/backyardpropertypod?igsh=MWhkOWx5YzJxdDc3ag== Website: https://tuskfinance.com.au Connect with Michael: Facebook: https://www.facebook.com/tuskfinancemk Instagram: https://www.instagram.com/mortgageswmichael LinkedIn: https://www.linkedin.com/in/michaelkilliner TikTok: https://www.tiktok.com/@backyardpropertypodcast Tusk Finance: [email protected] Chapters: (00:00) Why you may be sitting on more money than you realise (00:48) What you'll know by the end of this episode (01:20) What equity actually is: worth minus what you owe (01:50) The 80% ceiling and your usable equity (02:50) How equity becomes cash: the cash-out or top-up (03:16) The four steps: valuation, loan increase, funds, deposit (04:05) Buying without money out of your pocket (04:40) Why loan structure matters so much for tax (05:05) Loan one vs loan two: home loan vs investment borrowing (05:50) Why keeping the splits separate protects deductibility (06:30) The cautions: bigger debt, your home as security, falling values (07:35) Pulling it all together: the golden rule (08:15) Why the cash-out loan should be interest-only with an offset (09:10) Deductibility changes since the budget (09:40) Neutral gearing and what you can claim against rent (10:40) Debt recycling and where to learn more (11:00) Final reminders and wrap-up Produced by Podwave Studios: https://www.podwavestudios.au #EquityRelease #PropertyInvesting #PerthProperty #UsableEquity #InvestmentProperty #MortgageTips #CashOut #DebtRecycling #OffsetAccount #TaxDeductible #PropertyPortfolio #HomeEquity #AustralianProperty #MortgageBroker #NegativeGearing #LoanStructure #PerthRealEstate #FinancialEducation #BuildWealth #PropertyPodcast
More from That Backyard Property Podcast
Book a consult with Michael: https://calendly.com/d/cwrg-969-cjc
Book a consult with Michael: https://calendly.com/d/cwrg-969-cjc
Perth home values are down 3.2% from their April peak, but still up 15.6% on a year ago. In this mini episode, Michael Killiner breaks down how existing owners should decide whether to keep, sell or restructure: the marginal buyer question, how to sell well in a market with more stock, and the loan levers that often matter more than your rate, from resetting your loan term and checking your valuation to interest-only expiries, cross-securitised loans, the loyalty tax and whether to fix now.
Days on market in Perth have blown out from 8 days to 21, and sellers are still pricing like it is last year. In this episode, Michael Killiner sits down with Rowen Powell, Director of Verve Buyers Agency, to ask where the Perth market really sits right now and whether we will look back and wish we had bought more property. Rowen unpacks over 7,000 listings, why a 3.7% pullback needs context after 15.6% growth, what makes a compromise asset, and why buyers are holding out for scarcity and forever homes. They also dig into the gap between appraisals and what buyers will pay, the risk of leaning on computer valuations, and what actually wins an offer in Perth today. To finish, Rowen shares where he thinks the market lands in 6 and 12 months, and Michael looks at hold costs and whether forced selling could appear next year. Essential listening for buyers, sellers and investors who want to understand how to make calm, calculated decisions in a wait and see market. 🔔 Subscribe and leave a comment with your questions -- we build episodes around what YOU want to know. General advice only and not personal advice. CRN 485467 ------------------------------------------------------------ In this episode: - Why spring has not delivered the usual spike, with more than 7,000 listings and townhouses, apartments and outer fringe stock leading the increase. - How to read a 3.7% drop since April when the previous 12 months delivered 15.6% growth, and why a wet winter and post-budget mood skew the numbers. - What a compromise asset looks like, from busy roads and poor orientation to school zones and redevelopment risk, and why buyers now want a forever home. - The valuation gap, where a $1 million appraisal becomes a $950,000 sale, and why that $50,000 tax-free difference keeps sellers on the hill. - Why you should get more than one recent appraisal, and how computer valuations and bridging loans can leave sellers stuck. - What wins offers now, including clean contracts, flexible settlements and rent backs, plus the traps of buying off market. - Why the wrong house at a discount is still the wrong house, and how to stress test repayments and your offset buffer before you buy. ------------------------------------------------------------ Subscribe: https://youtube.com/@ThatBackyardPropertyPodcast Instagram: https://instagram.com/backyardpropertypod?igsh=MWhkOWx5YzJxdDc3ag== Website: https://tuskfinance.com.au Connect with Michael: Facebook: https://facebook.com/tuskfinancemk Instagram: https://instagram.com/mortgageswmichael LinkedIn: https://linkedin.com/in/michaelkilliner TikTok: https://tiktok.com/@backyardpropertypodcast Tusk Finance: [email protected] ------------------------------------------------------------ Chapters: (0:00) Will we wish we bought more property (1:30) 7,000 listings and a wait and see market (3:05) Replacement cost and the market floor (4:30) A 3.7% drop after 15.6% growth (5:50) What a compromise asset looks like (8:00) Baldivis, Ocean Reef and a tiered market (12:00) The $50,000 tax-free valuation gap (14:20) Computer valuations and bridging risk (16:15) What wins offers in Perth now (19:15) The off market trap (20:55) Where the market sits in 6 and 12 months (22:40) Rates, hold costs and forced selling (24:45) Longer home opens and days on market ------------------------------------------------------------ Produced by Podwave Studios: https://www.podwavestudios.au #ThatBackyardPropertyPodcast #PropertyPodcast #PerthProperty #PropertyInvesting #BuyersAgent #VerveBuyersAgency #PerthRealEstate #PropertyMarket #HomeBuyers #TuskFinance
A median priced Perth investment house now costs around $750 a week to hold, and from 1 July 2027 you can no longer use that loss to cut the tax on your salary. In this mini episode, Michael Killiner works through what the budget really means for anyone thinking about buying their first investment property.