Home owners are unaware of their true equity
Most home owners in the local area are unaware how much capital growth their property has accrued, LJ Hooker Padstow Principal Lush Pillay said.
Unlike their share portfolio, superannuation fund or term deposit, homeowners rarely had an accurate understanding of how much their home was worth.
“Everyday people go online to check their share portfolio, savings or credit card balances, but they don’t have any idea of the worth of their home which, for many of us, is our biggest asset,’’ Mr Pillay said.
“People normally don’t get an appraisal until they’re looking to sell, which is unusual when you think about the level of equity we seek to build in our homes to often fund retirement.
Some homeowners will do research online, but that doesn’t give the full picture said Mr Pillay.
“Home owners and investors use median home price guides released by various analyst agencies, and reported in the media, to gauge what their home is worth. However, this is a blanket guide and not necessarily indicative of your own property, they need an appraisal from a real estate professional.’’
Mr Pillay said an appraisal was free, easily organised, and could be completed quickly.
“Really, it’s easy to organise an appraisal and it allows home owners to understand how much equity they have in their property. It’s money that property owners should know they have,” he said.
“Once you have a clear understanding of your property worth then you have the power to do what you want with it; often our clients invest in an invest property or finally get those renovations done they’ve always wanted too.”