PIA (Somersoft) - Best way to record an equity release from Prop1 to Prop2

Any PIA experts in here ?

I have worked through the user guides, but have not been able to figure out how to correctly record equity release against properties.

My NSW duplex (my first property) has grown well and I am able to release enough equity to cover the deposit and costs for my Melbourne townhouse (second property).

I am currently showing the equity release loan as loan A against the Melbourne (2nd) property, and loan B is the primary loan for the remaining value of the same property).

But, because all the funds are borrowed it cannot calculate the Rate of return etc, it also means the LVR is 100% which doesn't feel right because it is also doesn't show in property one that there is another loan sitting against it ?

Am I missing a simple way to 'release equity' in a particular year against property 1 so that I can use it as cash deposit for number two, which feels more accurate in my mind.

The overall portfolio should look the same but reflect the loans/assets better

Sorry thats not a great description but hopefully sounds familiar to others too.

Cheers Alex

 

You are not releasing equity but are borrowing money. Since PIA is about projecting cash flow I think it should be recorded against the property it was used for, not the security.

 

Thankyou, when you explain it like that its actually kind of obvious, thank you for taking the time to reply