How much equity do I have?

From: Duanne Ginger


Hi all,
I purchased a house in Perth 2 yrs ago and it has increased by about 35k (not much compared to Syd/Mel/Bris, but high in percentage terms). In the two years I have lowered my mortgage by 10k. By my simple maths I then have 45k equity in my house. Is this correct? I ran the numbers through one of the westpac calculators and it came with around 15-20k, depending on the exact numbers.

Which is correct? My simple calculation or the W?

All help greatly appreciated.

D.
 
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Reply: 1
From: Rolf Latham


Hi DG

To allow us to nail the available equity please tell us:

1.Whats the place worth today
2. What fo you owe on it.

Ta

Rolf

Rolf
 
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Reply: 1.1
From: Duanne Ginger


Rolf,

The house is worth 170k, but to be conservative lets say $160k?

I owe $120k

thanks

DG
 
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Reply: 1.1.1
From: Ian Findlay


Hi Duanne,

From your figs. House value $160k, you owe 120k.
You have $40 equity but remember the bank will only (usually) lend upto 80%
on value of your house. So 80% of $160 is $128k. You owe $120 which means
you have $8k available equity.

Else talk to Rolf about higher LVR loans i.e. where the banks will lend you
upto 95% of house value i.e $152-120=$32.

To borrow Dale's line - hope this helps . .

Ian.

> From: "Duanne Ginger" <duanneginger@hotmail.com>
>
> Rolf,
>
> The house is worth 170k, but to be conservative lets say $160k?
>
> I owe $120k
>
> thanks
>
> DG
>
>
>
>
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>
 
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Reply: 1.1.1.1
From: Duanne Ginger


Thanks,
not much eh? but its good to have the facts...

DG
 
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Reply: 1.1.1.1.1
From: Rolf Latham


Hiya

If you have a good income and low liabilities you may be able to refinance to 95 % of the value so 152 000 minus 120 000 leaves around 30 000 for something.

30 000 could go a long way for Ips.

Ta

Rolf
 
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