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Borrowing property equity

Discussion in 'Introductions' started by Janette.caruso, 27th Jan, 2014.

  1. Janette.caruso

    Janette.caruso New Member

    Joined:
    27th Jan, 2014
    Posts:
    1
    Location:
    Sydney
    Is it possible to borrow the equity from your home for the purpose of renovating and extending. Eg if you have $100,000 equity is it feasible to borrow this amount, therefore placing you in a positive gear for tax purposes.
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    You could borrow up to 90% of the value of the property. But borrowing means increasing the loan which means more interest and therefore unlikely it make something that was negative turn into positive - unless a massive jump in rent.