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The upside of this plan ( not getting into profits or not) is that you will have a PPOR that suits you rather than trying to find something established that you like. You can customise it for your individual needs. On the IP side a new house has the advantages of good depreciation and nice...

Equity is intangible cash in a way. The bank will loan against it but you can't 'withraw' equity. If the house goes up in value then you can't take it out but you can use it as security against a loan for more money. So that is why the total loan is 600k. The bank cares little amount the...

Equity can be used as security for a loan but you would still be borrowing $200k more the first and next build. If you were using a Line of Credit on the equity you would be borrowing $100k from the first build (for example) and then another $100k for the construction. It still equals a...

First thing you have to consider very carefully is that you are planning on demolishing the house which the bank is using as part of their security. So if all the sums work out make sure you ask the bank to go along with the plan. To borrow the rest of the money (and probably prior to...