LVR's play a part here too. If there's LMI involved (which it doesn't  like from the OP's post) then lender selection becomes even more important -as you don't want to reach exposure limits with either LMI provider too early.

All in all, it's possible – but as mentioned above, don't focus on the quantity of properties -the quality of the investment is more important. 

Cheers

Jamie

Hi Jude 

Welcome aboard

I like your profile pic!

The $170k (if you were wanting to access that much) would be used to cover the deposit/costs on subsequent IP purchases. You'd then take out another loan for the remaining balance of each IP. So it would like like this (assuming you're purchasing a couple of IPs for illustrative purposes):

PPOR (your current home)

Current loan: $150k

Equity release: $170k (to cover 20% deposits and costs on each IP purchase)

IP 1

Loan for 80% of the properties value (20% deposit/costs coming from equity release against PPOR)

IP 2

Loan for 80% of the properties value (20% deposit/costs coming from equity release against PPOR)

Now – with that $170k equity release, if it's set up properly you can have it sitting dormant with no repayments payable until you actually start using those funds (ie. when you find an IP to purchase) – and even then, you'd only have to pay interest on the portion of the equity release that you use (you might not spend it all up at once).

The first thing to do is talk with a decent finance person about your longer term plans – they'll then run scenarios and advise on the correct loan structure. At this point – depending on the lender that you're currently with, they may also be able to order a free valuation on your property so you can find out exactly how much equity you can access.

Hope that helps.

Cheers

Jamie

Where are you based?

Joe on this forum does kitchens and is in Melb – he might be able to assist.

I was speaking with him about kitchens the other day and he sure knows his stuff.

Cheers

Jamie

Hi Darryl

Welcome aboard. 

Cheers

Jamie

Hi and welcome aboard.

A) Yep it's possible

The equity release for IP 2 would be deductible. Is that what you mean?

You don't really turn the loan back to an LVR of 80% – you're increasing your borrowings against that IP to purchase another IP – therefore bringing the loan back up to 80%.

All sounds ok to me. Just avoid cross collaterising your properties.

Cheers

Jamie

Most banks will assume that the costs are around the 20% – 30% mark when assessing your borrowing capacity. 

As Scott said though – it can vary quite a bit between properties and their locations. Using a property manager or self managing will also play a part.

Cheers

Jamie

No worries Roxy. I think you'd be best off getting a second opinion on your current loan structure. You might be able to set it up better – which in turn will likely save you some money.

Cheers

Jamie

Good luck with that. Watch your credit file get fried and your loan declined too.

Cheers

Jamie

Hi there

Nothing can replace experience in the world of property investing IMO. 

There's also a lot of free info out there – including forums like this one.

Personally  – I wouldn't bother. If I had my time over again – I'm not sure if I would have spent 4 years getting my degrees….and those degrees have nothing to do with the world of property.

Cheers

Jamie

Hi there

Welcome aboard.

You can't do that in order to boost deductible debt and lower non deductible debt.

There's a "purpose test" that is applied to loans to determine whether it's deductible or not – if the purpose is investment related it's deductible, if it's not investment related it isn't. The purpose here is to pay down your PPOR debt – therefore the increased borrowings against your IP won't be deductible.

cheers 

Jamie