“Home equity. They talk about it. They rave about it. But if you’ve got some, what should you do with it?”

Older Gen Xers will have got stuck into the mortgage game many years ago. Through the combination of paying down the loan and the property rising in value, they have probably developed some reasonable equity by now.

Younger Xers might have only recently bought their home, or are saving their deposit, so won’t have developed too much of it yet.

The generations to the right will have more equity, but it is Xers who have time on their side and, therefore, the most to gain from using home equity for financially “great” purposes. And by that, I mean investing for your future.

Xers average incomes are still rising, which means that borrowing to invest can make more sense to this generation than others.

If you’ve ever thought about becoming a property investor, or investing in shares, home equity can be a tax-effective and cheap source of funding to help you make those investments.

But there’s no doubt that home equity can be used for financially dumb purposes. That is, using that equity like a giant credit card to regularly update your car or furniture or for holidays.

Using home equity for investment purposes is not for everyone – and always seek advice if you’re even a little unsure about investing.

And don’t misunderstand the risks. Using home equity to invest, instead of your own savings, increases risk and the chance that you could lose your home if you can’t repay the debt.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.