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oh yeah for sure, i only meant like my close friends and family.
well thats good then……thanks
just to clarify, i only used the LOC for the deposit and fees such as stamp duty.
or did you mean its a problem if you use a LOC for the whole purchase?
Qlds007 wrote:Did you purchase the IP using a LOC in its entirity or only to fund the deposit and acqusition costs ?
If you did you may have an issue and suggest you clean this up immediately.
why is that???
that is exactly how i got my first INV property, through a LOC on my PPOR house.
everybody has told me thats the right way of doing it…………or is it not?
and i actually tell others thats what they should do.i think im learning more from you guys on this forum than from anyone else
Thanks Richard, but i sort of dont understand
you say the only way of safeguarding myself is by splitting the portfolio.
isnt that what i am going to do if i do 2 separate loan applications?
or again, isnt it that easy?ok…im starting to sh*t myself now as i have 2 INV properties cross collaterised with Westpac and have so for a few years now.
So after reading all the negative comments about cross collaterising, i decided to investigate on how to get them removed and separate.spoke with a Westpac guy and he said i need to refinance the current debt, and do 2 separate loan applications for each property, and he said thats all.
is that it………is it as easy as that???i do think cross collaterising is a good way to get the property, but i think you guys are right and down the track it can cause problems.
oh and i do think brokers are awesome and people should trust them just like the guys on this forum. only reason im not using mine now is for a totally different and way too long reason.
god_of_money wrote:Not such a free lunch Rudiga
huh?
Qlds007 wrote:Sorry to disagree guys but that is not the case.Gifted deposits are ok and there is still one lender who will go to 95% LVR and does not require any form of genuine savings as long as you have job and residential stability. Any external debt they want to see the loan statements but all else is sweet.
It is 95% less LMI and the application fees are a little higher but all in all a good product if the glove fits.
Richard, who is that Lender?
what a brilliant reply and post
i didnt realise the extent of how bad it is……….from your post, it seems like there are so many people out there working and advising without a proper licence
good onya wealth4life
yeah true, but property investing is long term and i dont intend on selling any of them soon
excuse my ignorance, but what exactly is Cross Securitising?
I think i know what it is but reading this post i think maybe not.i have 2 INV properties which i believe are cross securitised with ANZ. can someone please tell me if the following is cross securitised?
I had an INV property with fairly low LVR of about 30% with ANZ. i then purchased another INV property and borrowed with ANZ just over 100% of the purchase price to cover fees such as stamp duty.
so by using my existing INV property i avoided paying Mortgage Insurance and i didnt have to come up with any funds out of my own pocket for these fees and the deposit.
and the total LVR is under 80%.and now with ANZ under the Breakfree package i have Loan 1 which is secured under the first INV property. and i have Loan 2 which is secured by the new property i bought.
is that cross securitising? i thought it was, thats what ANZ told me anyway.
and from reading this topic……will i have problems if i go to sell one of these properties???
do you think over time banks will increase back up to 95% and even 100%…..if so when do you guys reckon when?
it must be so hard for a first home buyer now, especially when the grant comes down to $7,000
OK………..i just been told by my broker that banks are not doing Low Doc's for Family Trusts.
can someone please help……..which bank will do 80%, 70% or even 60% for a purchase in a Family Trust.
And it needs to be Low Doc.my broker has pretty much said he cant help………..which is always good to hear….not
is a Hybrid Trust the same as a Family Trust?
reason why i have purchased an off the plan INV property which is settling in about 4-5 months.
I bought it in a Family Trust name and i was hoping to get 80% as a Low Doc.should i be worrying???
Thanks for that, thats what that Broker was telling me as he said he just uses his experience, i might stick with him.
I dont work in the finance industry but i'm really into it and fascinated about loans and structures, etc. as i have a few mortgages spread out over a few lenders.
when i did speak to a few brokers, they raved on about their software and those were the ones mentioned. have you guys heard about any of these?
also, what about these companies that advertise mortgage reduction strategies? im thinking they use this software and they are selling Line of Credits? is that right?
but isnt that factored into the Comparison Rate?
Thanks for that Richard…..much appreciated
so really, having an Offset linked to a IO loan is pretty much the same as having a Line of Credit loan. its just either having 1 account or 2 accounts if there is an Offset.
people have been telling me a Line of Credit loan should never be used for a OO or even INV loan. but it pretty much works the same way doesnt it? If i had the same house with an initial Line of Credit balance at $300K, the limit will always stay the same so it helps me down the track if i ever turn it into an investment.sorry for rambling on, but like you said its something that the banks dont tell you about. to be honest i reckon most of the banks staff dont even know anything about how it works.
Mezzanine…..oh no!!!!
I'm having Westpoint nightmares
First time poster and user, and this topic is real interesting to me.
Richard, your rationale is excellent….and agree with the IO way to go…however have this question.
What your saying is For EG, I take out a $300K IO loan on a OO security with value, lets just say $350K….has an offset attached to it.
In 3 years i decide to move out to another OO, and keep my first house to use as an INV property.
i have made additional repayments in the 3 years and lets say my balance is now $250K, because i have $50K in my offset account.Are you saying that if I use that $50K in the offset to help pay for my new OO property, the balance on my first property which is now going to be used as a INV, will be back to $300K……..and hence because the balance is now $300K, it is 100% tax deductible?
i hope that makes sense
cheers
