OK looking at the next property and had a brilliant idea but can I do it.
My current LRL was set up borrowing from my redraw, worked perfectly, I now want to buy the next property as I am almost finished paying of the second one. So can I set up the redraw LRC to pay the 30% deposit on a property and borrow the 70% from a bank. Doing this I can pay off both loans in under 7 years, if I have to save the 30% deposit with projected price increases etc the result is about the same.
So while I think I can do this, will it pass the audit test.
ASB
ASB there is no issue in using redraw funds in order to purchase your next property,
Whether the funds are Tax deductible or not is a different matter.
We structure all of our clients loans differently but using equity to fund deposits is totally acceptably.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Can you take out a Limited Recourse Mortgage on a existing property in the superfund that is fully or almost fully owned to get the deposit for the next, ie using the equity to move forward ie one property is valued at $185,000 and I want to purchase a second of the same value so I use 30% equity in one via a LRL to make a deposit on the second borrowing the remaining 70% on that via a LRL as well.
This would bring the funds holding to three properties.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
