Can I draw down LOC?

W

WebBoard

Guest
From: Paul Hendriks


Hi All,

Just tossing some ideas around here... If you could help with your thoughts I would appreciate it.

I bought an I/P in Wollongong in January 02
A 2 bd unit in Nth Wollongong, 200 mts from Beach & 200 mtrs from shops for $188k. Asking price was $200k, Bank Val was $190k
LVR was 75%. Renting for $200 p/w

I have been indicated the value now could be $220k - $230k ( I feel $210 - $220k max )but if I were to revalue to say $210k, could I then draw down another $20k to use as I wish?
& if so, how do I go about this process.

Rolf put the finance together, so maybe he could help also?

I am looking to use these IF POSSIBLE? funds for a Business Venture which should produce good income to help me purchase more I/P's.

Similar to Gail H question, but not fixed rates.

Regards
Paul
 
Last edited by a moderator:
Reply: 1
From: John P


Hi Paul, You should be able to get it re-valued and then have a line of credit that you can draw on for that amount

John
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1
From: Paul Hendriks


Hi John,

Thanks for the reply...

It would be great to do so, & would help the budget for the new business.

I'll also hunt Rolf down & get his feedback.

Paul
 
Last edited by a moderator:
"Can I draw down LOC? Yes, but not THAT much..."

Reply: 1.1.1
From: Les .



G'day Paul,

Just to put your thinking right, what you could do is withdraw perhaps $15k. My assumptions are that you will stay with a 75% LVR, and that value has grown to $210k.

To help understand this, let's say 20 years have gone by, and the property is now worth $1,190,000 - i.e. $1m gain on original Bank valuation.

Of course, there is NO WAY you could borrow $1m - but 75% of $1m, maybe.

Regards,

Les


- "Eschew Obfuscation" - ;^)
 
Last edited by a moderator:
Top