If you have purchased property in Australia (some parts) before, you would have seen the value of the property increase over time.

This is your gain, or also known as your equity.

Many use their gain or equity to do other things like purchase a new car, open a business, renovate, consolidate debt or purchase an investment property.

How do you get access to the gain or equity?

There are two ways to get access to the equity.

You can either sell your property and access the gain as sale proceeds

or

Refinance your loan and redraw on your equity.

If you sell, you pay capital gains tax on the gain. But if you don’t sell, you can access the equity without paying capital gains tax, while still enjoying the proposed growth in the property.

Here are 3 things to consider when refinancing for an equity release