Hi,
Apologies if this has already been asked on this forum, but I would like to hear what advise/thoughts people have on my situation. Currently have a PPOR worth $850k with $370K owing. We also own an IP worth $410k (at least) with about $290k owing. LoC loan against PPOR (or should it be against IP?) is close to being set up. Note: This IP is close to being positively geared. We would like to upgrade our PPOR before we go to one income of around $150k (before tax). Current joint income of about $300k (before tax). Would like to purchase a block of land as IP (to get the tax benefits) in preparation for a knock down rebuild. Estimated land price would be around $550k. My question is could we set up a LoC against IP instead to purchase the land and then use the equity in our PPOR to build the house (estimate $450k build contract)? Would this mean we could avoid LMI so we don’t have to sell current PPOR before construction of new property? Thanks in advance!!
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