Thankyou so much everyone :)

Thank you so much Terry.

Is it a fair assumption that if I am approved for a certain amount, but my house plus the reno amount is that approved amount, then it would be fine? (EG approved for $400k but buy $350K IP and $50K for the reno for sake of argument). Or impossible to say?

Would I be able to combine my equity loan for the deposit and the LOC for the reno together in an IO loan once it is all said and done?

Using a LOC do I need to prove my spendings? eg do I need tradespeople quotes and adverts of the tiles I plan to buy etc? Or show them my receipts? Do I need to prove it would add value to the IP?

Thankyou Jamie.

Yes I have been wondering how I could pay the deposit if I couldn’t negotiate a $1000 deposit. If I paid in cash how I would get it back into the loan? The more I think of it the more I realise I need to do it. Talking through a problem really helps – and so does someone’s confirmation when I am going against advice given…

Do you (or anyone) know if I would need 2 separate equity loans, one for deposit and one for reno funds, or could they be combined somehow and if so is there any problem with it? Are there any conditions attached to getting an equity loan for renovations?

I have opened this question in a new thread in finance, as I think it is really totally separate, and I think I am resolved to refinance as soon as I am sure of my structure. Hope this is not against forum etticut.

With thanks,
Jo

• This reply was modified 8 years, 10 months ago by  jojo.

Thanks Jamie :) It’s a good reminder for me.

Yes that was my original plan, buy and hold, but after doing a lot of reading/researching etc I realise if I could reno and sell 2-3 houses at even low to medium success before getting a buy and hold, my financial situation would be greatly enhanced.

Nevertheless, if I need to hold my potential renovated house, it certainly won’t be the end of the world, especially if the rent can hold its value.