news. sydney properties fall in half , page-6

Here is a classic example, at least this guy is asking questions....how many arent?

Hi Everyone,

I'm sorry, but this is doing my head in. Really I should know this.

If I had an IP that I bought for $200k and one year later it is worth $400k that would mean I have $200k equity in it, right?

Now, as I (partially) understand it, that means I can use (80% of $200k) $160k.

Does that mean then, that if I found a house for $160k, I could buy it using just the equity I had and not actually borrow anything?

That can't be right

http://www.somersoft.com/forums/showthread.php?t=42624

They just borow against borrowings whilst we are in the middle of a credit crunch with rising cost of debt