Accessing Equity from more one properties for next purchase

Discussion in 'Loans & Mortgage Brokers' started by standtall, 8th Jul, 2016.

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  1. standtall

    standtall Well-Known Member

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    Lets say

    Property A Value is $600K Loan is $400K
    Property B Value is $600K Loan is $400K

    Is it possible to use equity from both properties towards new purchases without setting up 3 new loans (1 each against all 3 properties)?
     
    Last edited: 8th Jul, 2016
    standtall, 8th Jul, 2016
    #1
  2. jprops

    jprops Well-Known Member

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    That's only one property.
     
    jprops, 8th Jul, 2016
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  3. standtall

    standtall Well-Known Member

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    Fixed - Damn copy, paste!
     
    standtall, 8th Jul, 2016
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  4. Gockie

    Gockie Life is good ☺️ Premium Member

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    Loan top ups?
     
    Gockie, 8th Jul, 2016
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  5. standtall

    standtall Well-Known Member

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    Thanks.

    How would this work from a tax point of view?
     
    standtall, 8th Jul, 2016
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  6. Gockie

    Gockie Life is good ☺️ Premium Member

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    Are they all ips?
     
    Gockie, 8th Jul, 2016
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Get a loan on each property or cross and get one loan. Increasing existing loans is possible but would mean mixed purpose loans.
     
    Terry_w, 8th Jul, 2016
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  8. KoopaTroopa

    KoopaTroopa Active Member

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    Yes I've done this myself in the past. Don't know if you could still do it today.

    What I did in theory (used your numbers, not mine):

    Property A "$200k" equity was borrowed, with LMI, into a new loan sub-account secured by Property A. I'll call this EquityLoan A $160k (80% of $200k). This is a sub-account of the original loan. This is not "setting up a new loan".

    Property B "$200k" equity was borrowed, with LMI, into a new loan sub-account secured by Property B. I'll call this EquityLoan B $160k (80% of $200k). This is a sub-account of the original loan. This is not "setting up a new loan".

    Using EquityLoan A + EquityLoan B, I was able to buy Property C which has its own NEW loan.

    So, I'm left with

    Property A Value is $600K Loan is $400K
    Property B Value is $600K Loan is $400K
    Propery C Value $500K funded by EquityLoan A $160k + EquityLoan B $160k + NewLoanC $230k = $550k owing

    Total owing = $400k + $400k + $550k = $1.35m
     
    KoopaTroopa, 11th Jul, 2016
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Sounds like a new loan to me!
     
    Terry_w, 11th Jul, 2016
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  10. KoopaTroopa

    KoopaTroopa Active Member

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    Hahaha is it?

    I did loan top-ups and then organised a "split" into a new sub-account.

    I didn't think they were new loans...because same lender, same account number for existing loan and new account number for the sub-account.
     
    KoopaTroopa, 11th Jul, 2016
    #10
  11. JDP1

    JDP1 Well-Known Member

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    yup..have to be able to service 1.35M..
    planning to do something similar myself.
     
    JDP1, 11th Jul, 2016
    #11
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