I have asked my MB to get a valuation done on one of my IP's, as there is sales evidence to suggest that there is definately some equity ready to be recycled. I want to use the extra funds to top up my LOC (which is used purely for investment purposes).
She has suggested that the best way for me to go at the moment is to use the equity to increase the actual IP loan, then transfer the extra funds over to my LOC ready for use on all my IP's.
This seems a bit messy to me.....or is that strategy fairly normal? I'm just thinking from an accounting point of view!!
I know it would be neater to just increase my current LOC, but I don't have enough of an increase in equity in the properties securitizing the LOC as I only just increased it in April this year.
Any comments/suggestions would be most welcome.
ta
sq
She has suggested that the best way for me to go at the moment is to use the equity to increase the actual IP loan, then transfer the extra funds over to my LOC ready for use on all my IP's.
This seems a bit messy to me.....or is that strategy fairly normal? I'm just thinking from an accounting point of view!!
I know it would be neater to just increase my current LOC, but I don't have enough of an increase in equity in the properties securitizing the LOC as I only just increased it in April this year.
Any comments/suggestions would be most welcome.
ta
sq