Release equity or pay out PPOR

[zaligirl]

Hi all,

Im in the process of buying 2nd IP and wanting advice on paying out PPOR loan or releasing equity in PPOR. The home is valued around 540k,25k owing. IP valued at400k, 160k owing.

Our aim is to buy and hold several more IP's.

Any Advice would be appreciated.

 

[Aimjoy]

Zaligirl,

You need to max out (subject to your comfort & affordability levels) your tax deductible debt. Max out the IP loan and max out your PPOR equity to use as deposits for new IPs - otherwise its all lazy equity not being out to work.

All the usual caveats.......Aimjoy