Land + Construction Loan Using Investment Equity

I am waiting for my broker to come back from holidays so I thought I would make a post here to get the ball rolling on a plan.

We currently 'rent' our inlaws house for $500 a week in Syd. We also have an investment property in Syd with a mortgage of approx $460k worth $620k - rental income covers the mortgage. Both on decent incomes - 65k + 75k no dependents. We do have a car loan and another small person loan that we are currently paying off.

What are our chances of successfully being able to use the equity in the investment to help us buy land and build? How much of a deposit will we need realistically?

We are looking at moving closer to where we want to build which will drop the rent we are paying to $300 per week.

Thoughts?

Hi LucyBear, you could potentially access up to $98,000 in equity based on the above valuation (no comment on affordability here, that takes a fuller conversation but doesn't look impossible)

Ideally you need at least 5% of the value of your new place for deposit + another 4% to cover your costs - you haven't specified how much you'd like to spend on the new place?

Lucky broker getting holidays,....

Approximate figures but land $200-220k. Building $380k plus landscaping etc. Probably looking around 650k total.

We figured 10% deposit - will the equity help to bring down the LMI?

Sure will. Nice work!