Forum Replies Created
Thanks for your comments Richard.
I will certainly look at uncrossing the 2 IPs, as this should allow access to some equity for investment in further IPs?
Would it be worthwhile having an offset loan on the PPOR to use for renovations and deposit for future PPOR?
regards
RoyThanks for your comments Jamie.
I fell victim to cross collateralisation due to lack of knowledge.
Only learned about it after it had been done. Didn’t realise that the lender
had set it up to ensure a safer/stronger control over my assets.How would you suggest i obtain the funds for extension/renovation of PPOR?
I thought an offset loan would be best as plan to live in house for a few years, then
upgrade to a larger home and retain current PPOR as IP3?
regards RoyHi Richard
Your comments are greatly appreciated. I was about to setup a St George Portfolio Loan
with our PPOR and IP (both are currently under separate loans with SGB), which I suspect would have been x-collateralised under the Portfolio Loan. I now see that strategy as flawed.
We are hoping to buy several IP's over the years and want to set up the correct loan structure from the start.With regards to the scenario you have described above, would you recommend that a different bank/lender be approached for each subsequent IP? (to avoid one bank having all the loans and then raising servicing issue).
Also, would the bank require either the PPOR or an IP as security when applying for loans for subsequent IP purchases? (and therefore x-collateralise)
regards
Ranjit
