Forum Replies Created

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of Lioness59Lioness59
    Member
    @lioness59
    Join Date: 2003
    Post Count: 5
    May 6, 2005 - 3:24 am
    Originally posted by Mobile Mortgage:

    Hi Lioness,
    I would not suggest using the unencumbered property as security on the new purchase,there is no need,
    Instead, you could access your current equity and use this as a deposit on 80/20 finance; this will avoid giving the lender 2 properties as security over One loan, (cross colaterisation)

    This structure will allow you to borrow 100% finance on the new purchase without the need for mortgage insurance and cross colaterisation, as your LVR on the new purchase will be 80%

    An IP savvy Mortgage Broker could set this structure up for you. Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of Lioness59Lioness59
    Member
    @lioness59
    Join Date: 2003
    Post Count: 5
    February 17, 2003 - 10:59 am

    quote:

    Hi Lioness,

    Another advantage with a LOC, is the fact you are able to split your account in to sub-accounts which will help keep in clean when tax time comes around. This way you can montor cash investment and interest paid on each loan.

    Some of the banks will allow you to have up to ten sub accounts for no extra fees ( excluding your yearly account fees)

    Also, Most banks will not entertain second mortgages either so LOC makes a lot of sense.
    Cheers

    EP

    Hi Elvis Priestly,

    Thank you so much for your advice and suggestion. Much appreciated.
    Regards,
    Rissa

    Profile photo of Lioness59Lioness59
    Member
    @lioness59
    Join Date: 2003
    Post Count: 5
    February 17, 2003 - 10:56 am

    quote:

    I fully agree with Birdman on this one. Setting up an LOC also gives you some bargaining power too. If you can go in and offer a cash transaction and buy the property out of your LOC then refinance after. This enables you to move quickly and offer agressively.
    Hope this helps.

    Enjoy
    AD [:0)]

    “Don’t dwell on reality; it will only keep you from greatness.”
    -Rev. Randall R. McBride, Jr.

    Dear AD,
    Thank you for your suggestions. Much appreciated.
    Regards,
    Rissa

    Profile photo of Lioness59Lioness59
    Member
    @lioness59
    Join Date: 2003
    Post Count: 5
    February 9, 2003 - 1:51 pm

    Hi Birdman,

    Thank you for the information. Much appreciated.

    Rissa

Viewing 4 posts - 1 through 4 (of 4 total)