Hi All,
I have a few properties, but still consider myself very inexperienced when it comes to investing, so please forgive me if this is a dumb question.
This isn't exactly my position, but it will illustrate my question best.
Lets say I have $300k in equity in my property portfolio.
Now, I want to buy a house worth $300k. Even though I have the equity, I still have to physically borrow the $300k because I can't give equity to the seller (right?).
My actual question is: given this situation, the repayments (even allowing for rent) would kill me. Is there some (advisable) way I can use the equity I have to help pay the repayments? Is there some other obvious strategy I'm overlooking?
Any advice/help would be much appreciated.
SR
P.S - I know the bank will only (typically) loan 80% of the $300k and there are borrowing costs, but I left all that out to try and keep things simple and more clearly illustrate my point (although I don't know if I've succeeded yet!).
I have a few properties, but still consider myself very inexperienced when it comes to investing, so please forgive me if this is a dumb question.
This isn't exactly my position, but it will illustrate my question best.
Lets say I have $300k in equity in my property portfolio.
Now, I want to buy a house worth $300k. Even though I have the equity, I still have to physically borrow the $300k because I can't give equity to the seller (right?).
My actual question is: given this situation, the repayments (even allowing for rent) would kill me. Is there some (advisable) way I can use the equity I have to help pay the repayments? Is there some other obvious strategy I'm overlooking?
Any advice/help would be much appreciated.
SR
P.S - I know the bank will only (typically) loan 80% of the $300k and there are borrowing costs, but I left all that out to try and keep things simple and more clearly illustrate my point (although I don't know if I've succeeded yet!).