Thanks heaps to everyone for your comments. I've now suggested to my MB that I don't understand why I need to cross collateralise – that I still find it confusing and am nervous about it. I'm now told I that I don't have to but check with my accountant.I asked for but still haven't received any advice on why X-collateralising is a good idea.Since…[Read more]

Thanks Richard & Sanjiv for your replies.
Can you point me in the right direction to find out more about these perils & why to avoid at all costs.
Sorry for being naive but ….
My Mortgage broker has actually recommended we do it ?
X collateralise one IP against a new one.
Now I’m wondering why ???
I haven’t done it yet – so……
But I now know…[Read more]

Hi Devo
excuse my ignorance but where can I find more info on the ‘dangers’ of cross collateralising – and what do you now have to do to ‘fix it’ ?

The negative gearing on your IP – looks to me like you have a loss before tax of about $9,000 a year. Hopefully your projected capital growth will easily cover that. If it does (and looks like it is…[Read more]

Thanks vyaw 2003 and JFisher for the replies.
After a cosmetic only reno (say $20,000 max – not counting any fence) the house is actually more like $100 – $150,000 less than comparable ones a street or two off the main road – as it is a sought after & relatively high capital growth area.
The big unknown is just how much of a negative is the…[Read more]

The other thing I wanted to mention/ask is big fences to screen from the road – any comments on the merits of that ?[blink]

Thanks for the input Mr/Ms Devo
This one is on an access road into Semaphore and Port Adelaide – easily accessible to both.
Lots of development going on there – and properties moving fast.
The road is not overly congested and has a good green corridor and a proposed bike path along it. Good public transport as well.
I’m just concerned about the…[Read more]