hi i’m new to this but have a million questions and I thought that maby someone could answer a few of them. We have a ppor that we are getting a new valuation on to be able to use as much equity as possible for investing. We have been advised to do a refinance and have part of the loan as fixed and part as line-of-credit and then use the line of credit for deposits on investments. Could someone give me their view on this and maby explain it to me a bit better. I would also like to know is anyone could tell me if it would be safer to invest under a business name and how to go about this then. Who are the professionals I need to talk to before entering in to investments and how can each help me (accountants, finance brokers, morgage brokers). I need any help I can get to get started as I’m very commited and want to make a change now.
Thanks Ulrika
Definetly get all you people on board like your accountant and solicitor. They will help you through the minefield of tax and government requirements.
As for the loan structure it really depends on your personal circumstances. A line of credit does not owrk for everyone. You need to be disciplined with money. If you think you will be tempted to continually redraw the funds available for non investment reasons then I do not recommend a line of credit.
Also be aware that if you decided to sell and close down your loan before the fixed portion expires you may be charged a considerable penalty to get out of the loan.
So you need to look at your spending habits and look how willing you are to keep your non investment spending under check.
I hope this helps.
Thanks for that answer, I think we need to talk to a good morgage broker about what loan is best for us for investing. Also what kind of questions should I put to my accountant to find out maximum benefits and strategies for my investments? A solicitor would only really be involved when there is a deal being made right?
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