07/01/2026
๐๐ฐ ๐๐๐๐๐ถ๐ฒ ๐ต๐ผ๐บ๐ฒ ๐ผ๐๐ป๐ฒ๐ฟ๐ ๐ท๐๐๐ ๐ด๐ผ๐ $๐ด๐ฎ,๐ฌ๐ฌ๐ฌ ๐ฟ๐ถ๐ฐ๐ต๐ฒ๐ฟ ๐ผ๐ป ๐ฎ๐๐ฒ๐ฟ๐ฎ๐ด๐ฒ ๐ฐ๐โฃ
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What a way to start the new year! After a strong 12 months in the property market, plenty of homeowners around the nation are now a whole lot wealthier. And their newfound increase in home equity has opened up some exciting possibilities for 2026.โฃ
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Your home isnโt just a place to live in, it could also be a cornerstone of personal wealth.โฃ
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2025 proved this in spades.โฃ
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At a time when holiday spending means many of us may not be feeling particularly wealthy, a rise in your homeโs value could see you $82,200 richer (on average) as we head into 2026, according to PropTrack.โฃ
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Letโs take a look at whatโs happening, and how you could put all that equity-driven wealth to work.โฃ
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๐๐ป 2025: a bumper year for homeowners ๐๐ปโฃ
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Australiaโs housing market finished 2025 on a record high, spurred on by rate cuts, increased investor demand and expanded home buyer incentives, says PropTrack.โฃ
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After climbing 8.8% over the year, the national median home value gained $82,200 over the course of the year.โฃ
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Even bigger gains were recorded in several capital cities.โฃ
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Sydneyโs median value rose by $101,200 through 2025. Brisbaneโs median went up $135,900 and Adelaideโs median home price grew by $101,600. โฃ
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Perth topped the leaderboard of gains, with the cityโs median home price rising by an eye-watering $148,100 in 2025.โฃ
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A few smart strategies could help you get a lot more bang from your higher-home-equity buck! Here are three ideas worth a look.โฃ
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๐๐ป 1. Give your place a makeover ๐๐ปโฃ
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Whether your home is a little too snug for your familyโs needs, or it could just do with a thorough refresh, your home equity could help fund the renovation improvements.โฃ
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Even better, renovations donโt just make your place more liveable, they can also add to your propertyโs value โ making renovations a win-win.โฃ
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๐๐ป 2. Invest in a rental property ๐๐ปโฃ
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Property may not only serve as a long term investment, it could also generate regular rental income plus valuable tax savings (always speak to your tax professional for tailored advice on this).โฃ
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And if you think you have to be rich to become a landlord, think again.โฃ
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Teachers, nurses, truckies and cops are among the nationโs most-prolific property investors.โฃ
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Thatโs because one trick to becoming an investor is to use your resources wisely. โฃ
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The good news is that you may be able to use home equity in lieu of cash as a deposit on an investment property.โฃ
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This may not only let you hang onto cash savings, it could also mean you use one valuable asset (your home) to fund another asset (the rental place), which may also grow in value.โฃ
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๐๐ป 3. Refinance and reap the rewards of a new loan ๐๐ปโฃ
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An increase in your homeโs value may offer more than bragging rights around the office water cooler. โฃ
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It could also help you save on interest on your home loan. โฃ
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When your homeโs value increases, your loan-to-value ratio (LVR โ thatโs the value of your loan as a percentage of your homeโs market value) decreases. โฃ
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This shift matters because a lower LVR may mean you represent less risk to lenders. And this might see you eligible for a lower interest rate.โฃ
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Refinancing isnโt just about rate savings though.โฃ
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Switching to a new loan and lender could help you access new or more suitable loan features.โฃ
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It could also free up funds for other purposes โ anything from giving your kids a quality education, to paying for your next holiday, or consolidating personal debt to streamline your finances.โฃ
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๐๐ป Talk to us about putting your equity to work ๐๐ปโฃ
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If youโre not making the most of your home equity, it might be time to ask yourself โwhy not?โ.โฃ
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Get in touch today to find out how you could make your home equity work harder.
