Browse Forums Home Finance 1 Jan 17, 2012 7:38 pm Hi everyone, I bought a house a year ago with a large deposit (price of $425K, loan $320K), I then spent about $7K doing it up slightly and as such have no money left! But I do have a lot of equity and if sold tomorrow would walk away with about $100K taking out agents fees etc. I now want to sell this place and buy a new one with my partner, I know I can use a deposit bond for the deposit using my equity, but can I use one to pay stamp duty? Partner has about $20K cash but rest is in an investment property so we don't have enough cash to cover the stamp duty which is about $30K. What are the options for paying stamp duty when the money is tied up in equity? Re: Buying a new house - deposit bonds and stamp duty 2Jan 20, 2012 5:41 pm So I'm assuming you are going to buy the new place before you sell the old one? Maybe get a Line of Credit (or increase the loan limit and withdraw it) on the existing house and use that for stamp duty etc. If you have $100K equity it shouldn't be a problem. Re: Buying a new house - deposit bonds and stamp duty 3Jan 25, 2012 2:52 pm Hi, A few options, but which one you choose will depend on your serviceability + timing and use of the new place ( PPOR or IP? for tax reaons) 1. bridging loan 2. Going with a lender that will be happy to lend you a personal loan at the same rate as the home loan to pay out the stamp duty ( you can apply for the stamp duty to be paid later on via your lawyers ) 3. Equity loan/ LOC as last poster mentioned ( easiest) Also not sure what made you think you dont have a lot of equity...without the price of the property going up; so based on original figures- you have 20k equity without any LMI, and 60k if you pay ~4.5k for LMI cost which also can be borrowed- may not be the best option, but an option never the less. Regards Michael fordehouse Hi everyone, I bought a house a year ago with a large deposit (price of $425K, loan $320K), I then spent about $7K doing it up slightly and as such have no money left! But I do have a lot of equity and if sold tomorrow would walk away with about $100K taking out agents fees etc. I now want to sell this place and buy a new one with my partner, I know I can use a deposit bond for the deposit using my equity, but can I use one to pay stamp duty? Partner has about $20K cash but rest is in an investment property so we don't have enough cash to cover the stamp duty which is about $30K. What are the options for paying stamp duty when the money is tied up in equity? Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4821 Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6442 Yes well there solution is to blame everyone else while I a 65yr old woman with major medical problems have to just continue to boil water and wash myself in a bucket… 2 16013 |