I have a question about ELOC. Say I have 100k in equity and I access this through an ELOC secured against my property.
I can use this 100k as a deposit to purchase an investment property for say 500k. I also have an all in one account.
And I believe I then pay interest on the all in one and ELOC.
My confusion is around the additional 400k which is the cost to purchase the investment property (500k – 100k deposit)…should I not be paying interest on this aswell??? Or is this secured against the investment property or something??
Totally confused by this. Any clarification would be great
Thanks in advance
Yep, You'll be paying Interest on the $400k as well
Tenant and tax man help
Dont forget Stamp Duty, Loan Costs etc…………
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