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Utlising Equity in Property

Discussion in 'Investing Strategies' started by Alex, 15th Aug, 2007.

  1. Alex

    Alex Member

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    Just a thought... what is the best way to re-valuate an existing PPOR or IP to determine and utilise the equity for investing purposes?

    Who does the valuation? How do you organise one? and what does a valuation cost? :confused:
     
  2. Alex

    Alex Member

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    Any advice would be appreciated..
     
  3. Mark Laszczuk

    Mark Laszczuk Well-Known Member

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    mortgage broker.

    Mark
     
  4. Simon

    Simon Well-Known Member

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    You would normally do it through your lender. Depending on the type of loan you have the costs could range from $0 - $600. I would be discussing a professional lending package with a discounted rate and fee free valuations and fee free new loans.

    If using your home then don't simply "top up" your current loan. This would have taxation disadvantages.

    Cheers,
     
    Last edited by a moderator: 17th Aug, 2007
  5. Alex

    Alex Member

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    Simon, can you elaborate a little further on this. Do you mean getting a totally separate loan (LOC or Split loan) so that deductible interest can be tracked more closely

    Thanks
     
  6. MiddleClassMonkey

    MiddleClassMonkey Well-Known Member

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    Simon, are you a broker or accountant?
     
  7. Simon

    Simon Well-Known Member

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    Thats right.

    A golden rule of investing is to never mix loan purposes. So personal debt (inc PPOR) should never be combined with investment/business debt.

    One of the big disadvantages is if you mix the two they must be paid down equally. So you cannot dip into a loan for personal use then pay back the personal bit - it has to be repaid in the same ratio.

    Having a split at the very least makes everything so much easier!
     
  8. Simon

    Simon Well-Known Member

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    I have a broking business but I don't advertise it here.

    I am here as a fellow investor.

    Cheers