All Topics / The Treasure Chest / Setting up the accounts

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  • Profile photo of PeterMac_2PeterMac_2
    Member
    @petermac_2
    Join Date: 2003
    Post Count: 1
    September 10, 2003 - 12:18 am

    I have have just settled on my first IP (retirement 2 x unit property) and was wondering if I have done the right thing regarding my Lines of Credit.

    I had my house valued by the bank at $400K (full equity) which gives me $320K to play with.[:D]

    I have split this into two LOC $40K and $280K. The $40K LOC is for personal use and for receiving salary, rents etc. The $280K LOC is for deposits and costs. I then get a new LOC for each future IP at 80% of valuation.

    My main worry is that I will run out of deposit and costs finance before I get anywhere near my goals.

    Is there another way of doing things.[?]

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    September 10, 2003 - 12:40 am

    Peter,

    Harness the miracle of appreciation.

    As your home and the properties you purchase go up in value then you can increase the LOC or increase the IP debts to pay down the LOC. Wont happen immediately but it will happen.

    Be patient grasshopper.

    Simon Macks
    Mortgage Hunter
    [email protected]
    0425 228 985

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