Heres what i mean by usable.
Lets say your PPOR is worth $800k and your current loan is $500k. Some people think they have $300k equity to play with. They're wrong.
If you were instead going to borrow up to 90% of $800k gives $720k, minus the $500k already owing gives $220k as usable equity to play with. Get the $500k and $220k as
separate loan accounts. Why? Because the latter will be tax deductible
That is cool!
So now you have $220K to go play with. Ignoring LMI fees and Stamp Duty fees for a second, you could use that as 10% deposit on $2mil worth of property, or 20% deposit on $1mil worth of property, depending on what you're trying to achieve.
Oh wow! Such big numbers....exciting!!
That $1mil (or $2mil!) might comprise of 1 x $1mil property or 10 x $100k properties, or anywhere in between, again depending on what you're trying to achieve.
I'm guessing it's faster to go the 10 x $100k route to build wealth. Now where can I find those cheapy properties in Perth?
Just showing you a simplified look at what some of the roads look like - you still have to choose the destination and estimated time of arrival, yourself
