Is it posible to use the equity one may have in an investment property as leverage in applying for another loan?
In other words, if I buy a house at forclosure for $20k less than the going rate, can I access that $20k as equity for another loan on another investment?[
]Hi Russ,
I don’t see why not – as long as you can get it valued at 20k more than you paid for it……
Cheers
KymOnly after the settlement. If you wait three months plus then have it revalued you will be able to access it.
Be careful you choose the correct institution though.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Russ,
If you can increase the valuation by $20k, you will only be able to up to 90% (with LMI) and 80% (with no LMI) of that as equity for another investment property.
I recommend you do a serach on valuations in this forum and you will see many comments on this matter.
James
Shouldn’t be a problem..
As has been said by mortgagehunter , however whilst you wait, why not do some low cost inprovements, also do some research into the area ( comparable property costs etc ) get at least 3 valuations done by R/E agents in the area to give you an idea of value..
Then why not..use the Equity M8[^]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
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