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  • Profile photo of jodes92jodes92
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    @jodes92
    Join Date: 2011
    Post Count: 3
    February 28, 2011 - 3:40 am

    Hi Amazingjeffrey,

    Not sure if i have misunderstood your question and my apologies if I have.
    But from my understanding, (assuming your lender requires a 20% deposit/ 80% LVR ratio which most do), your 20% equity needs to cover BOTH purchases.

    For instance, in your situation
    Debt: 320k
    Value: 400k
    Equity: 80k (20%). This equity is only enough to cover your current property.

    But, if for instance, your property rose in value to 420k, you would have enough equity to purchase an investment property worth 100k.

    Hope that makes sense!
    Thanks,
    Jodie

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