Hi Folks,
I currently have 1 PPOR and planning to buy an IP before end of the year.
Would like to know more about extracting equity from the current property and use LOC to fund the next IP purchase.
Some variables:
A = PPOR initial puchase price = 500k
B = PPOR new price (bank valuation) = 600k
C = Loan amount = 300k
D = Total equity that can be withdrawn = (80% x B) - C = 180k
E = Assume D is correct, then I can buy an IP with price up to 720K (180K as 25% deposit with 5% is the purchasing cost: solicitor, stamp duty, etc)
Some questions:
Q1 - is that correct that I could withdraw the equity (D) as LOC?
Q2 - now if I have D (180k sitting in LOC account).
Fast forward to the next 3 months, I haven't found the right IP and if the B has gone up from 600k to 700k, could we then tell the bank to top up the LOC amount if I want to buy a property > 720k?
Please help to answer some of the Qs above. Much appreciate your help.
I currently have 1 PPOR and planning to buy an IP before end of the year.
Would like to know more about extracting equity from the current property and use LOC to fund the next IP purchase.
Some variables:
A = PPOR initial puchase price = 500k
B = PPOR new price (bank valuation) = 600k
C = Loan amount = 300k
D = Total equity that can be withdrawn = (80% x B) - C = 180k
E = Assume D is correct, then I can buy an IP with price up to 720K (180K as 25% deposit with 5% is the purchasing cost: solicitor, stamp duty, etc)
Some questions:
Q1 - is that correct that I could withdraw the equity (D) as LOC?
Q2 - now if I have D (180k sitting in LOC account).
Fast forward to the next 3 months, I haven't found the right IP and if the B has gone up from 600k to 700k, could we then tell the bank to top up the LOC amount if I want to buy a property > 720k?
Please help to answer some of the Qs above. Much appreciate your help.