I had taken an home loan on a flat which has appreciated 100% since.
I spoke to LIC trying to refinance, however, they declined.

Anyone can give suggestion how can I convert the paper value to money
and reinvest without having to SELL the apartment.
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  • how do you do that.you mean you want more equity out of your home.?
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  • Originally Posted by anandxx
    I had taken an home loan on a flat which has appreciated 100% since.
    I spoke to LIC trying to refinance, however, they declined.

    Anyone can give suggestion how can I convert the paper value to money
    and reinvest without having to SELL the apartment.


    Will you agree if the bank reduces the loan amount incase the flat value goes down?
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  • well just wanted to see if there was a way to converting this
    paper money without having to sell the property.

    thats what people do in other parts of the world.
    CommentQuote
  • Originally Posted by anandxx
    I had taken an home loan on a flat which has appreciated 100% since.
    I spoke to LIC trying to refinance, however, they declined.

    Anyone can give suggestion how can I convert the paper value to money
    and reinvest without having to SELL the apartment.

    You should ask LIC the reason for declining.

    It could be because

    LIC would have wanted to keep the 100% appreciation as the buffer incase the property devalutes in future or could be you havent repayed significant amount of the principal to ask for the difference based on your repayment capacity and asset value.

    In any case bank wont loan you more than the 70-85% of the asset value.

    You can ask for a top up loan from the bank, if its not the same you are suggesting.

    Ask other private banks for enhanced loan amount and consider shifting to the one who are offering better rates.
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  • Talk to other bankers HDFC,SBI, etc .

    a) Check whether the existing finance with LIC can be bought by the other bankers in different terms.
    b) Find out other banks valuations. You could pre close the loan with cash and avail loan with the property.

    In any case try to work out the costs involved and the equity gained. What are you going to do with the equity? Will the equity can be reinvested to buy another (value) assets in this economic downturn to generate more appreciation or cash flow.. Please do the home work and find out whether it is worth doing.

    From a investor point of view, you can take the equity from a assets and buy another (good) assets. Over a period of time(long term) you will have 2 assets growing instead of one. Again it depends on your risk bearing capacity and cash flow. Do you want to be debt free or on a credit tied with the bank for years?. All these counts.
    CommentQuote
  • Originally Posted by anandxx
    I had taken an home loan on a flat which has appreciated 100% since.
    I spoke to LIC trying to refinance, however, they declined.

    Anyone can give suggestion how can I convert the paper value to money
    and reinvest without having to SELL the apartment.


    Talk to other bankers HDFC,SBI, etc .

    a) Check whether the existing finance with LIC can be bought by the other bankers in different terms.
    b) Find out other banks valuations. You could pre close the loan with cash and avail loan with the property pledged.

    In any case try to work out the costs involved and the equity gained. What are you going to do with the equity? Will the equity can be reinvested to buy another (value) assets in this economic downturn to generate more appreciation or cash flow.. Please do the home work and find out whether it is worth doing.

    From a investor point of view, you can take the equity from a assets and buy another (good) assets. Over a period of time(long term) you will have 2 assets growing instead of one. Again it depends on your risk bearing capacity and cash flow. Do you want to be debt free or on a credit tied with the bank for years?. All these counts.
    CommentQuote
  • home loan top-up

    Originally Posted by anandxx
    I had taken an home loan on a flat which has appreciated 100% since.
    I spoke to LIC trying to refinance, however, they declined.

    Anyone can give suggestion how can I convert the paper value to money
    and reinvest without having to SELL the apartment.



    Axis Bank, IHFD bank, etc. are taking over existing home loans from other banks with top up personal loans on the same property depending upon the present value of the property and your repaying capacity in EMIs. The rate of interest for the top-up loan will be slightly higher
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  • *******

    Originally Posted by krajgop
    Axis Bank, IHFD bank, etc. are taking over existing home loans from other banks with top up personal loans on the same property depending upon the present value of the property and your repaying capacity in EMIs. The rate of interest for the top-up loan will be slightly higher


    Welcome back.:)
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