Question on equity strategy

Discussion in 'Loans & Mortgage Brokers' started by PeterL, 4th Jun, 2020.

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  1. PeterL

    PeterL Member

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    23rd Nov, 2016
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    Canberra
    Can I use my equity ~$50,000 to buy another property and then sell the existing property?
     
  2. Terry_w

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

    Joined:
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    You would be borrowing against the existing property if you did this. When sold the mortgage would need to be discharged and this may mean the loan secured against it must be discharged - but not always.

    see
    Tax Tip 74: Selling a property that secures other loans Tax Tip 74: Selling a property that secures other loans