Are You Using Equity Wrong? Here's How It Actually Works! - With Jeremy Iannuzzelli & Todd Sloan

Are You Using Equity Wrong? Here's How It Actually Works! Equity is defined as the difference between the valuation of an asset, like a property, and the outstanding loan on that asset. For example, if a property is valued at $1 million and has a loan of $500,000, the equity is $500,000. This is how it works in a nutshell, but what does it truly say when you take a closer look at how you can maximise extracting usable equity? That's why on this episode, Jeremy Iannuzzelli is here to discuss how equity really works and what the common pitfalls are that people seem to make when using equity. Jeremy advocates for splitting the extracted equity into smaller amounts. This approach simplifies tracking and managing the loans, especially when it comes to tax deductions and understanding the costs associated with each property. This is just one of the many aspects discussed in this episode. If you want to hear about the full details of how to use equity properly, then click on this episode today! Get in touch with our amazing episode contributors & sponsors: Chat with Steve Ash today: https://www.propertystrats.com.au/ InvestorKit: https://www.investorkit.com.au/ Rob Flux: https://developernetwork.com.au/events Jeremy Iannuzzelli: https://www.praediumpartners.com.au/contact CHAPTERS: 00:00:00 - Introduction 00:01:35 - Common Misunderstandings About Equity 00:01:45 - Defining Equity and Usable Equity 00:02:09 - High-Level Explanation of Equity 00:03:08 - Visualising Equity with Examples 00:03:29 - Bank Lending Limits and Usable Equity 00:04:00 - Risk Management by Banks 00:04:22 - Extracting Equity: Initial Steps 00:04:48 - Importance of Borrowing Capacity 00:05:30 - Split Loans and Their Importance 00:06:00 - Cash Flow Considerations 00:06:11 - Structuring Loans for Clarity 00:07:04 - Benefits of Splitting Loans 00:07:44 - Clean Loan Structuring for Tax Purposes 00:09:01 - Avoiding Complex Interest Calculations 00:09:47 - Simplifying Financial Tracking 00:10:08 - Communicating Goals with Your Broker 00:10:23 - Retrospective Loan Splitting 00:10:44 - Refinancing and Cleaning Up Loans 00:13:29 - Common Mistakes in Cash Flow Analysis 00:14:02 - Misleading Cash Flow Projections 00:16:12 - Current Interest Rate Environment 00:17:22 - Final Thoughts 🍕🏠 We want to hear your investor story! So if you've experienced something that you know other investors can learn a thing or two from, click the link below and let us know. 🍕🏠 👉 https://pizzaandproperty.com.au/investor-story 👈 If you'd like to be flown into the Pizza & Property Studio, put up for a night's accommodation, have dinner with Todd Sloan, and have a team of carefully chosen property investing experts help you get unstuck, click the link below and tell us why you're stuck, and you could be our next UN-Stuck Yourself winner! 👉 https://pizzaandproperty.com.au/unstuck-yourself 👈 Want more help understanding how to buy property faster and for less? Get your copy of Todd Sloan’s book today: Booktopia: https://www.booktopia.com.au/australia-s-home-buying-guide-todd-sloan/book/9780648980490.html?source=pla&zsrc=go-nz-allstock&gclid=Cj0KCQjwnJaKBhDgARIsAHmvz6f55Kw-l0pKCn0DMNj0TND2qN863sQQR56p98sXAjOUgBQSpwDDQ0waAtLsEALw_wcB Dymocks: https://www.dymocks.com.au/book/australias-home-buying-guide-by-todd-sloan-9780648980490?gclid=Cj0KCQjwnJaKBhDgARIsAHmvz6etuq25nQ2CSirN8z-UHAIshbp5MxeuD7ECMvs5Oghg2Pab34Fyl0QaAuQhEALw_wcB YouTube Pizza & Property: https://www.youtube.com/channel/UCgXX6ibW7WEFbWkf-jslDvQ?view_as=subscriber Facebook Pizza & Property: https://www.facebook.com/Pizza-and-Property-2111096335696398/?modal=admin_todo_tour ASK YOUR LISTENER QUESTION BY VISITING THE WEBSITE BELOW Website: https://www.pizzaandproperty.com/ Disclaimer: All discussions are general in nature and should never be considered financial advice, please seek your own professional financial advice. The content displayed on the website, podcast, and blog is the intellectual property of Pizza and Property. You may not reuse, republish, or reprint such content without our written consent.