Hi There,
I've been thinking about purchasing an investment property for a while now. My wife and I live in a house we bought in Paraparaumu three and a half years ago for 200K. I want to get my mother in a house so I have a guaranteed tenant. This is where I need some advice.
I'm looking at starting a company.
I want to use our house as security for an IP, but how do I go about this? We had our house re-evaluated @ 276K last year and have heard about cross-collateral. our Mortgage is 188K so there is a bit of equity there. What I really wanted to know is how to release this equity to use as a deposit on another property.
Is this how it works??:
Home: 276K
Investment home: 200K
Equity in 1st Home: (say) 50K
Can the company I'm looking at starting use the 50K for a deposit? Or does it mean that the mortgage on the IP is still 200K but 50K of that is security in our own home?
Thanks.
Elia
I've been thinking about purchasing an investment property for a while now. My wife and I live in a house we bought in Paraparaumu three and a half years ago for 200K. I want to get my mother in a house so I have a guaranteed tenant. This is where I need some advice.
I'm looking at starting a company.
I want to use our house as security for an IP, but how do I go about this? We had our house re-evaluated @ 276K last year and have heard about cross-collateral. our Mortgage is 188K so there is a bit of equity there. What I really wanted to know is how to release this equity to use as a deposit on another property.
Is this how it works??:
Home: 276K
Investment home: 200K
Equity in 1st Home: (say) 50K
Can the company I'm looking at starting use the 50K for a deposit? Or does it mean that the mortgage on the IP is still 200K but 50K of that is security in our own home?
Thanks.
Elia
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