INVESTING
good creditworthiness
• The value of the property must have either increased or remained stable
• The repayment period must remain unchanged , and
• The amount borrowed is limited to the difference between the initial bond and the outstanding balance .
I always encourage property investors to refinance all their properties to 100 % of the market value as far as possible . That doesn ’ t mean you need to use all the available funds . You can keep it in your access bond . Remember , cash is king ! Having cash available can help you take advantage of opportunities that arise or get you out of trouble … Having a lot of equity means next to nothing in these two scenarios .
- to healthy levels in case of emergencies or changes in the economic climate . As a property investor , having an emergency fund or reserves in your access bond is a prerequisite . I recommend having at least 10-15 % of the value of your properties as cash reserves in your access bond .
Use the funds to expand your property portfolio - cover
4 Benefits of using an Access Bond Let ’ s assume you ’ ve built up surplus funds in your access bonds ... Now what ? There are four main ways to use the additional money you ’ ve paid into your access bond . You can :
Leave the funds in there to build up your reserve fund
37 JUNE / JULY 2023 SA Real Estate Investor Magazine