All Topics / Help Needed! / Equity Investment Process

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  • Profile photo of MAVMAV
    Participant
    @martynv
    Join Date: 2014
    Post Count: 2
    January 7, 2015 - 2:25 pm

    As a newbie to this fantastic forum only discovered it about 2 months ago!!

    I Just wanted to check some figures……….

    PPOR purchased 2011 for $519k
    2014 PPOR was valued by bank at $570k
    2014 Used $80k (deposit) equity in PPOR for IP and borrowed $350k (main loan)
    PPOR balance is $414k as at end of 2014
    Capital growth for 2014 = 6%

    So can I say (PPOR) $570k + 6% Capital Growth –subject to an evaluation by bank
    PPOR is now worth $600k?
    Therefore potentially $600k – $414k = $186k plus 6% capital growth on IP ($410k) =$24k

    We made the classic first time IP mistake by purchasing IP in the same area as PPOR, so the 6% Capital growth applies to both IP & PPOR.
    I’ve left off figure work for LMI, settlement etc as I just want to get the processes correct.

    Any advice would be most welcome.
    Thanks
    MAV

    Profile photo of superAndrewsuperAndrew
    Participant
    @superandrew
    Join Date: 2014
    Post Count: 188
    January 7, 2015 - 7:06 pm

    Hi MAV
    is there a loan on PPOR?

    To put it simply:
    Value of all Properties – all the loans = Equity.

    Cheers
    Andrew

    superAndrew | Property Analyser and Finder Tool
    https://property-analyser.com.au

    Profile photo of MAVMAV
    Participant
    @martynv
    Join Date: 2014
    Post Count: 2
    January 7, 2015 - 8:24 pm

    Thanks for replying, yes we owe $414K on the PPOR.

    Cheers
    MAV

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