Best way to structure finance

Hi everyone,

Been reading the forums and have looked at IP2 today which they look to accept my offer. Im waiting for the bank to call back and speak to me but here is the situation

IP1 - valued at around $270k
IP2 - purchase for $340k

My question is around the deposit on IP2 and the best way to make my money work for me.

Say there is about $25k equity in IP1 (to bring it to 80% LVR), how can I best use that $25k to contribute to the deposit of $68k on IP2?

In my readings on the forums and in general, I could x-coll or obtain a line of credit on the loan of IP1? Is that the right idea or have I got it all totally wrong! Thanks

LOC or IO loan for the $25k

I agree, your 2 options are

1. A separate loan against your existing IP for $25K ( either LOC or variable IO loan ). Use this option if you don't want to x-col.

2. Include the existing property as security with your existing lender. Properties would be x-col, but depending on lender, this may give you a lower overall rate if you can get a higher pro pack discount.