Equity loan for PPOR

Viewing 6 posts - 1 through 6 (of 6 total)

booge
Participant
@booge
Join Date: 2011
Post Count: 48
February 16, 2012 - 5:36 am
Is it advisable to use equity in the current PPOR to buy a new PPOR? Then the original PPOR will be an IP.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 16, 2012 - 5:48 am
Yes it is fine as long as it is structured correctly.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
February 16, 2012 - 6:09 am
I hope you haven't paid down a huge chunk off that current PPOR principle.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
booge
Participant
@booge
Join Date: 2011
Post Count: 48
February 19, 2012 - 5:22 am
Nah have just refinanced anyway. Will be using an offset for the current PPOR mortgage. Don’t know how we’ll afford a mortgage if we borrow the lot and buy a PPOR on equity. It kills me to say it but we may just have to sell our current PPOR.
Unless anyone has some ideas?
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
February 19, 2012 - 5:46 am
Booge,
Selling your PPOR to buy a new PPOR is not a BAD thing.
The non-deductible debt associated with your own home is the hardest of all debts to deal with (no rent & no tax deductions) so keeping this debt level low is always to your advantage.
You can play around with selling current PPOR to partner etc but I am one for keeping things simple.
FWIW we are in similar situation at the moment. Will sell our existing home to buil new home.
booge
Participant
@booge
Join Date: 2011
Post Count: 48
February 19, 2012 - 9:49 am
I’ll try everything to keep it. Current PPOR value is more than double what we owe and renting it out would be CF+, not really enough to make much difference to a big equity loan on a new house though.