Selling PPOR with equity tied up elsewhere

Discussion in 'Loans & Mortgage Brokers' started by Jimmylt, 14th Sep, 2017.

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  1. Jimmylt

    Jimmylt Well-Known Member

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    What happens if I want to sell my PPOR but I have equity from it tied up elsewhere?

    Rough figures:
    Worth 600k.
    Owe 300k.
    Equity split set up of 110k.
    70k of split used to fund IP.
    260k borrowed from another bank to complete IP.
    IP worth 400k

    So if I sell my PPOR, does that mean I have to pay out the 300k plus the 70k?

    Which leaves me 230k to go towards my new PPOR (less selling costs).

    Effectively meaning I am left with 140k equity in the IP?
     
  2. Terry_w

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

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    substitute security for the investment loan.
     
    Simon Moore likes this.
  3. Terry_w

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

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    Simon Moore and Chris Au like this.
  4. Jimmylt

    Jimmylt Well-Known Member

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    Thanks Terry. I knew you'd already have this covered somewhere!!