Lazy Equity

[BOO]

What is the best way to use lazy equity, or what has worked for you?

I appreciate your help.

 

[Twitch]

Depends whether your current cash flow is tight.

If not consider buying an IP, if it was tight I'd look to buying some high yielding shares or LPTs.

 

[Simon]

Sometimes the best choice is not to do anything with it.

You need to analyse the market and your expectations and needs. Decide then whether you can get a better return on using it elsewhere. Better return than the borrowing costs of accessing it.

I have a lot of lazy equity in my home and am happy to leave it earning 7% in my mortgage for now.

 

[RichardC]

One man's "lazy equity" is another's "buffer".

 

[BOO]

Thanks all for comments. Its great to get your feedback.

At present I have roughly $30,000 pa shortfall and have a LOC set up to cover this.

I use lo docs and interest rate varies from 6.99%+. Though there is a comfortable buffer I still would like to look at ways to reduce this.

Also at this point in time I have only invested in property but happy to look at all areas.