you said use the equity in your home to get another property.
Why not borrow just the deposit amount required from your currently property to cover the startup costs of the second property, then get a new loan for the investment property?
Why do it this way?
Thre are a few reasons, one being , u shouldnt have your 2 propertys with the one lender imo, this gives them too much control over your assets.
If the u know what hits the fan on your investment property for whatever reason they could sell your main residence if there was ever a shortfall.
Thats not good.
Also, lets say in 3 years time you sell the IP for a bit of profit.
Instead of thinking.....yipee....I have a profit coming my way.....
the bank can, may and prob will ask you to reduce your debt on the PPOR by perhaps the full 100% sale price of the IP.....which means youve in a way lost access to those profits, although yes reduced your debt on your PPOR.
So long as the bank agrees to do the deal as a seperate loan and it doesnt have the two properties cross collateralised then go for it....just keep them very seperate would be my advice
