My Melbourne Investment Property has increased in value, I believe (based on a similar property that just sold 3 doors down last week). I think this is a good reason to get a revaluation on my property now.
It is cross-colateralised with my home.
Option 1. I want to get the IP valued by the bank and then uncross it from my home because I beleive the IP can now stand alone with a LVR that will satisfy the Bank 80%LVR.
I have asked the bank manager how much this will cost and she said $200 for the valuation and $350 to split the two properties.
1. Bank maanger is strongly trying to persuade me to Option 2.keep the propeties crossed and any increase in Melbourne IP can be used as deposit for new property. Is this perferable to just spliting the properties and not having extra equity for depsosts. The bank would only allow 3 months window for me to find another propery vs LOC can take my time.
2. The Melbourne IP is on a fixed loan that I do not want to break. Could I get the equity from the revaluation and demand the bank give me the equity so that I can transfer it into a LOC I have already set up on a 3rd property. Thus no need for set up costs for another LOC.
3. Will putting money into the LOC affect the status of that LOC. ie tax deductibilty?
I am not in a hurry to buy another property and am weighing up the options of 1. uncrossing propertys 2. leave propertirs crossed and take equity out to put in existing LOC/set up new LOC.
Any advice or insights much appreaciated.