BY GT4 INVESTMENT PTY LTD — MORTGAGE & FINANCE BROKERS AUSTRALIA-WIDE

Owning your own home gives you more than just security — it gives you equity that can open doors to new wealth opportunities.
If you’ve built up value in your property, you may be able to use that equity to purchase an investment property without saving another full deposit.

At GT4 Investment Pty Ltd, we help clients across Australia understand how to unlock their home’s potential safely and strategically while maximising tax efficiency.

💡 What Is Equity and How Does It Work?
Equity is the difference between your home’s current market value and the balance of your mortgage.

For example:
– If your home is valued at $900,000 and your current loan is $500,000, your total equity is $400,000.

Most lenders allow you to access up to 80% of your property’s value, meaning you could borrow up to $720,000, leaving $220,000 available as usable equity.

This usable equity can often serve as the deposit for an investment property, helping you grow your portfolio faster.

🏦 How to Use Equity to Buy an Investment Property
1️⃣ Determine Your Available Equity
Your broker or lender will order a property valuation to calculate your accessible equity.
GT4 Investment can help you interpret the results and determine how much you can borrow responsibly.

2️⃣ Set Up an Investment Loan or Equity Release
You can use your available equity by:
– Refinancing your home loan to release funds, or
– Taking a separate investment loan secured by your existing property.

Either way, your home’s equity acts as the deposit for the new investment.

3️⃣ Use the Released Equity as the Deposit
For example, if you have $200,000 in usable equity, you might use $150,000 as a 20% deposit for a $750,000 investment property.
This avoids the need for Lenders Mortgage Insurance (LMI) and helps you borrow at a better rate.

4️⃣ Structure the Loan Strategically
GT4 Investment ensures your loans are structured to separate owner-occupied and investment debt — protecting your tax deductibility and long-term strategy.

5️⃣ Purchase the Investment Property
With your equity deposit in place, we help you secure competitive investment loan rates, handle documentation, and guide you through settlement.

📈 Why Use Equity Instead of Cash?
Using equity is one of the most powerful ways to leverage your existing assets to grow wealth.

✅ No need for extra savings — your home does the heavy lifting.
✅ Faster portfolio growth — buy your next property sooner.
✅ Better loan conditions — larger equity means lower risk to lenders.
✅ Potentially higher returns — property growth + rental income over time.

💰 The Tax Benefits of an Investment Property
When you buy an investment property, several tax advantages can help improve your cash flow.

🧾 1. Interest Deductions
The interest paid on your investment loan is generally tax-deductible because it’s considered a cost of earning income.
If your property earns rent, this deduction can offset that income — reducing your taxable income.

🏠 2. Negative Gearing
When your rental income is lower than your expenses, the shortfall (or “negative gear”) can be deducted from your taxable income.
This can reduce the amount of tax you pay while your property appreciates over time.

🧱 3. Depreciation
You may claim depreciation on the building itself and eligible assets (e.g. appliances, fittings, carpets).
A depreciation schedule prepared by a Quantity Surveyor helps you claim maximum deductions annually.

💼 4. Property Management and Expenses
Other deductible costs include:
– Property management fees
– Repairs and maintenance
– Council rates and insurance
– Travel costs (if eligible)

🧮 5. Capital Gains Tax (CGT) Discount
When you sell an investment property held for more than 12 months, you may receive a 50% CGT discount, reducing your taxable profit.

Our brokers work closely with your accountant to ensure your loan structure supports your long-term tax and wealth goals.

⚖️ Example Scenario
Sarah owns a home in Melbourne worth $900,000 with a $480,000 loan balance.
GT4 Investment helps her refinance to access $240,000 in usable equity.
She uses $180,000 as a deposit and costs for a $720,000 investment property in Brisbane.

Her new structure:
– Owner-occupied loan: $480,000
– Investment loan: $540,000
– Combined portfolio: 2 properties worth $1.62M with a total debt of $1.02M

Sarah benefits from potential rental income, property growth, and tax deductions — all while building equity faster.

🧭 Why Choose GT4 Investment Pty Ltd
– Nearly 20 years’ experience in mortgage and investment finance
– Access to over 30 lenders across Australia
– Tailored loan structures to separate personal and investment debt
– Transparent advice and long-term financial guidance
– Experts in home equity, refinancing, and property investment strategy

We help you grow your portfolio confidently, ensuring every step supports your bigger financial picture.

📞 Start Building Your Investment Portfolio Today
Turn your home equity into an opportunity for long-term wealth.
At GT4 Investment Pty Ltd, our experienced brokers will show you how to use your property’s equity to secure your next investment — and structure it for maximum tax benefits.

📧 denusha@gtfinancegroup.com.au | 📞 0426 822 971
🌐 www.gt4investment.com.au
Serving clients Australia-wide — Melbourne, Sydney, Brisbane, Perth, Adelaide, Canberra & Hobart.