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From: Firefrog .
I have asked this question recently with some good replies but I still don't get it!
What happens to equity when you access it.
If I have a house (prop1) with say 30K equity and wish to buy an IP (prop2) using that 30K to cover deposit and costs, how is it used. Does the loan on prop 1 increase by 30K and you transfer that cash to prop 2. or what???
I seem to be struggling to understand the technical aspects of using equity, I know it can be done and I know that there are several ways. Please help me to finally grasp what happens here.
Cheers
The Frog
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You can achieve far more than you allow yourself to believe. - David Pollitt
I have asked this question recently with some good replies but I still don't get it!
What happens to equity when you access it.
If I have a house (prop1) with say 30K equity and wish to buy an IP (prop2) using that 30K to cover deposit and costs, how is it used. Does the loan on prop 1 increase by 30K and you transfer that cash to prop 2. or what???
I seem to be struggling to understand the technical aspects of using equity, I know it can be done and I know that there are several ways. Please help me to finally grasp what happens here.
Cheers
The Frog
+_+_+_+_+_+_+_+_+_+_+_+_+_+_+_+_+_+_+_+_
You can achieve far more than you allow yourself to believe. - David Pollitt
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