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From: Dan D
I'm about to purchase my first IP.
I am using $25K of the equity in my PPOR to pay for deposit and cost of purchase of IP.
Since from the lender's point of view the $25K is a loan against the equity in my PPOR, the repayment of this loan is put into the total loan for the IP.
A few things I don't fully understand:
Presumably, I have now lost all previous equity in my PPOR since it has been used up for the purchase of IP. Correct?
The price of the IP is $225K. Total loan amount is $238K (to cover purchase costs etc). Do I have any equity in this IP at all?
Dan.
I'm about to purchase my first IP.
I am using $25K of the equity in my PPOR to pay for deposit and cost of purchase of IP.
Since from the lender's point of view the $25K is a loan against the equity in my PPOR, the repayment of this loan is put into the total loan for the IP.
A few things I don't fully understand:
Presumably, I have now lost all previous equity in my PPOR since it has been used up for the purchase of IP. Correct?
The price of the IP is $225K. Total loan amount is $238K (to cover purchase costs etc). Do I have any equity in this IP at all?
Dan.
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