Yes it's me again
OK, you may know that we are selling one of our IP's (Call it 2). This property was Xcolled with our old PPoR that is now also an IP (call it 1).
Valuation came back at $330,000 for IP 1, which is good as we have sold IP 2 for less then the loan amount we owe, so we have to UP the loan on IP1.
Bank says LRV to remain at 88% of the valuation $292,000 (Rough)
Our loan on IP 1 is $242,000 currently.
So after we pay out the differance, legal, agents fees, etc, we will have funds left over.
As these properties are IP's, we can not use the money ourselves as it would "Stuff up deductibility" So my questions is this.... where do we put the excess money? put it in the redraw account that is attached to IP1? I think that is the only solution?? This can then be used down the tract to purchase another IP with any luck.
Any other thoughts about this situation??
OK, you may know that we are selling one of our IP's (Call it 2). This property was Xcolled with our old PPoR that is now also an IP (call it 1).
Valuation came back at $330,000 for IP 1, which is good as we have sold IP 2 for less then the loan amount we owe, so we have to UP the loan on IP1.
Bank says LRV to remain at 88% of the valuation $292,000 (Rough)
Our loan on IP 1 is $242,000 currently.
So after we pay out the differance, legal, agents fees, etc, we will have funds left over.
As these properties are IP's, we can not use the money ourselves as it would "Stuff up deductibility" So my questions is this.... where do we put the excess money? put it in the redraw account that is attached to IP1? I think that is the only solution?? This can then be used down the tract to purchase another IP with any luck.
Any other thoughts about this situation??