Hello, I was wondering if I can have some help on a question i have been think about for a few days, my name is Peter and I have a block of Land out in the Eastern Suburbs of Melbourne. Its was intially purchased Jan 2000 for $115,000 and is worth around $175,000 now. What i was wondering is can I use the equity from the land value to purchase an investment property, say a small unit of around $175,000 for rental purposes. I owe around $100,000 on the original mortgage for the land as it stands now. I can comfortable re-borrow more as I am living with parents at the moment, but not sure what the refinance costs would be. Also i’m not sure if i would need Mortgage insurance for the new investment.
Thanks, Peter.
Peter you have $75K equity. I expect that would easily allow you to borrow that. It also depends on your income though. Just see your bank lending manager and if they say no, go somewhere else until you get yes.
cheers,
007Yes you can use your equity in vacant land.
I can check your serviceability and find the best loan for you.Over 42 lenders, that won’t cost you a cent more than going to the banks, yourself.
Email: [email protected]
Thanks Guys for the feedback.
I should first confirm with a valuation that the $75K value is true, (im 90% sure but independant valuations of the land will prove this)
I know for a fact though that next door just sold for $369K with a 28Square Double storey, so taking this into account the valuation of land at exactly the same size, should be correct.
Regards,
Peter.
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