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What to do with Equity?

Discussion in 'Real Estate' started by williamwallace169, 7th Mar, 2008.

  1. williamwallace169

    williamwallace169 New Member

    Joined:
    23rd Jul, 2007
    Posts:
    3
    Location:
    Sydney
    hey Guys,
    This is my first post so im very excited....:)

    Well my story is that i bought a unit 6 months ago for 181 000. My mortgage is currently at 171 000. I recently got it valued (out of boredom mainly) and it was valued at 230 000. (which is awesome.)

    im just a bit stuck on what to do now. Im a bit worried about interest rates going up and droping the value. then again the share market is going downhill at the moment. Should i just leave it and see what happens or sell up and just put the money in a bank account and collect the interest? or do you guys have any other idea's on what to do.

    Thanks heaps in advance
     
  2. artgul

    artgul Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    77
    Location:
    Sydney
    Hi William Wallace,

    my 2 cents follow,

    Do you have or are you following an investment plan or are are just reacting at current market conditions?. I guess that if you don't have a plan then, either way you go is fine. Otherwise, you better start a formulating one.

    Rgds,
    artgul
     
  3. Zman

    Zman Well-Known Member

    Joined:
    3rd Jul, 2007
    Posts:
    54
    Location:
    Sydney
    Hey Donkey :rolleyes:
     
  4. Zman

    Zman Well-Known Member

    Joined:
    3rd Jul, 2007
    Posts:
    54
    Location:
    Sydney
    At the moment its his PPOR and he is looking to turn it into a IP.

    You can use your equity to buy a second property if you wanted to.
     
  5. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Was it valued by the lender?
    The problem is that although you have equity you haven't had much of a deposit to start with so this equity is falling within the bank's security range
    and it's not easy to access.
    If the property was valued by your lender and they are willing to lend you 80% of the new value, you could get $184K.
    Considering that your existing loan is $171K you will end up with a buffer of $13K.
    Cheers
     
  6. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    Location:
    Sydney, NSW
    or you can take it to 90% and have roughly enough to purchase a 200k investment property... just some ideas... Dont be restricted to 80% in your thinking though