I'm contemplating to get my house (PPOR) valued to borrow some money for 2nd property (not sure IP or PPOR, does it matter anyway?).
Spoke to the developer of the land and the same size blocks are now selling for about $95k (i bought mine for $72k, up $23k) and as from the builder, due to increase in cost of materials and labour, the house that cost me $202k to built is now about $240k (up $38k).
My loan with the bank is still $250k. But my question is, should i get a valuation for the property and then ask the bank to release that $23k plus $38k. Is that how equity works?
Or is it better not to use PPOR as a collateral (if that is the correct word) for IPs?