Loan Structure Advice Needed

Hi all, looking for some advice on loan structuring. Will try explain as best I can;



IP:1



- Purchase price 2011 - $370k

- Current loan at $304k (80% LVR)

- Previous bank val came back at $380k in Jan 2014.

- Current market value - $440-$450k based on comparable sales and discussion with trusted local agent.





IP: 2



- Current PPOR while renovating

- Aiming to have completed by end of 2015 with hope of next val coming back around the $620-640k mark.

- Purchase price 2014 - $525k

- Current loan at $412k

- Current market value- $550-$580k based on comparable sales.

- $28k redraw + monthly savings available to fund reno's. (kitchen, 2 x bathrooms, new deck, paint etc etc.)



If I was to have IP:1 revalued and achieve figure of around $420K, (to my understanding bank vals can often be conservative in comparison to market value) would there be an option to push LVR back upto 80% (loan amount $336K) and bring pay the PPOR debt down as it is non deductible?



I am still undecided as to whether the property will remain PPOR or return to IP after renovations as I have plans to subdivide and build on the rear of block (STCA).



Fixed portion of loans is in locked in until approx mid next year.



I plan to discuss with my broker shortly but interested to get some alternate advice beforehand.



Cheers

Loan Structure Advice Needed