I've read much about living on equity, and would possibly like to apply this procedure at some point in the future.
But it seems much more difficult that one would think, and I'm almost angry that property experts state this is the main aim an investor should be striving for now that I'm interested in applying it and have discovered that it may even be impossible.
Apparently, I can't withdraw one of my property loans to 80% without mortgage insurance at the moment, only "possibly" redraw $10,000 without the lender asking questions. Says my broker.
This property currently sits at 66% LVR. and has approximately $135,000 equity. I was chasing $50k to capitalise for a rainy day, which would technically leave me at just under 80% LVR.
I have two questions.
1/ If one has lots of interest only loans, and at least one is lets say.. at 50%LVR, can they usually draw down to 80%LVR or more with LMI, no real questions asked?
2/ I don't quite understand that even on full doc right now, it's difficult to take a little of my profit. I'm thinking of changing strategy altogether and purchase property, hold property, sell property and repeat the pattern. Even though I'd be charged for CGT and agent fees.. which to me is a bit lame and I never wanted to ever have to sell a property.
But it seems much more difficult that one would think, and I'm almost angry that property experts state this is the main aim an investor should be striving for now that I'm interested in applying it and have discovered that it may even be impossible.
Apparently, I can't withdraw one of my property loans to 80% without mortgage insurance at the moment, only "possibly" redraw $10,000 without the lender asking questions. Says my broker.
This property currently sits at 66% LVR. and has approximately $135,000 equity. I was chasing $50k to capitalise for a rainy day, which would technically leave me at just under 80% LVR.
I have two questions.
1/ If one has lots of interest only loans, and at least one is lets say.. at 50%LVR, can they usually draw down to 80%LVR or more with LMI, no real questions asked?
2/ I don't quite understand that even on full doc right now, it's difficult to take a little of my profit. I'm thinking of changing strategy altogether and purchase property, hold property, sell property and repeat the pattern. Even though I'd be charged for CGT and agent fees.. which to me is a bit lame and I never wanted to ever have to sell a property.