Multiple Mortgages ?

Viewing 5 posts - 1 through 5 (of 5 total)

Most excellent
Member
@most-excellent
Join Date: 2003
Post Count: 100
August 13, 2003 - 11:43 pm
Hiya all,
My current lender is about to re-finance my two properties due to a vehicle being needed.
My question is am I better off putting two of my properties under one mortgage or one property one mortgage ?
I am also still considering trading from a trust fund but the Stamp duty has deterred me for now, John Hill of Real Estate Australia is a neighbour & he is attempting to abolish this duty ( yeah right ! ) although I do wish him well . Is there any legal parameters that I can get around this duty or is a better option for now just staying with my entity on these mortgage(s) ? Or is there even something out of the paradigm that I’ve missed?
olorinsledge
Member
@olorinsledge
Join Date: 2003
Post Count: 50
August 14, 2003 - 12:13 am
From what I know, it’s best to keep your properties under seperate morgages. ie each property has its own seperate loan.
This way you can correctly determine has much interest you paid on each property, how much monies you own on each property etc. Its easier to manage when it comes to tax time.
But then again, I could be wrong. Others thoughts? []
deckartjazz
Participant
@deckartjazz
Join Date: 2003
Post Count: 14
August 14, 2003 - 12:19 am
Its also better to keep them seperate for asset protection.
I believe if you transfer the properties, from your name, into a trust you will also be up for CGT. Maybe someone else can clear this up.
—
Jam for the Great I Am!
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
August 14, 2003 - 4:46 am
It is also best to keep loans separate for tax purposes. And it easier to refiannce just one of them in future (if necessary).
Terryw
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Melanie
Member
@melanie
Join Date: 2003
Post Count: 382
August 14, 2003 - 4:59 am
Howdy,
It really depends on what you owe on each property versus what it’s worth – my advice is go see a good accountant pronto re the tax & trust set-up costs for one/both of your properties then armed with these figures go see a mortgage broker or two and get them to fiddle with the options to meet all your objectives – lowest possible rates, right mix of LOC/Off-set account features for your future plans, minimising personal debt and maximising investment debt within reason and yes for all the reasons everyone’s suggested, try to keep the properties self-securitised, ie not cross-collateral for each other which, if you stick to the one bank, is invariably what they’ll recommend. Armed with info and options you can only be better off!!
Happy investing,
Mel