Many housing markets around Australia are beginning to turn negative. Intend to pull equity from IP to invest in shares if there is a crash/dip. Is it best to organise a LOC now while house prices are high? Or wait until the share market pull back in a couple of years and then organise it when the IP (and LOC) is probably worth less? What happens to LOC's in a falling market. Do the banks automatically reduce the LOC limit? If the LOC is drawn, will the banks ask for a top up of funds? A LOC sitting ready to go for a market crash is a great idea. But a bank asking for an instant cash top up to a drawn LOC would be very difficult to deal with. Don't want to get caught!