All Topics / Finance / Equity loan for PPOR

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  • Profile photo of boogebooge
    Participant
    @booge
    Join Date: 2011
    Post Count: 48

    Is it advisable to use equity in the current PPOR to buy a new PPOR? Then the original PPOR will be an IP.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes it is fine as long as it is structured correctly.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    I hope you haven't paid down a huge chunk off that current PPOR principle.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of boogebooge
    Participant
    @booge
    Join Date: 2011
    Post Count: 48

    Nah have just refinanced anyway. Will be using an offset for the current PPOR mortgage. Don’t know how we’ll afford a mortgage if we borrow the lot and buy a PPOR on equity. It kills me to say it but we may just have to sell our current PPOR.

    Unless anyone has some ideas?

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Booge,

    Selling your PPOR to buy a new PPOR is not a BAD thing.

    The non-deductible debt associated with your own home is the hardest of all debts to deal with (no rent & no tax deductions) so keeping this debt level low is always to your advantage.

    You can play around with selling current PPOR to partner etc but I am one for keeping things simple.

    FWIW we are in similar situation at the moment. Will sell our existing home to buil new home.

    Profile photo of boogebooge
    Participant
    @booge
    Join Date: 2011
    Post Count: 48

    I’ll try everything to keep it. Current PPOR value is more than double what we owe and renting it out would be CF+, not really enough to make much difference to a big equity loan on a new house though.

Viewing 6 posts - 1 through 6 (of 6 total)

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