All Topics / Finance / 4 IPs, cross financing bungle.

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  • Profile photo of hghaas21435hghaas21435
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    @hghaas21435
    Join Date: 2003
    Post Count: 6

    We currently have 4 IP’s, all cross financed. We’re looking to purchase our 5th and want to rectify our bungle asap, before we get in any deeper.

    Can anyone recommend a reputable Financial Adviser who is pro Property Investment, and who themself invests in property. We live in a rental in Sydney and have properties in SA and QLD, so we’re flexible on location.

    Open to any other thoughts.

    Julie & Glenn

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Julie and Glenn,

    Based on your comments I would suggest you should talk to a broker about your financial structure – there are a number of brokers who regularly post here. I suggest you read through soem other posts in the finance section to get a flavour for who could help you the most.

    A financial advisor, on the other hand, will design a financial plan for you within the constraints of their ‘book’ – the financial advisor who strongly recommends property is few and far between.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of hghaas21435hghaas21435
    Member
    @hghaas21435
    Join Date: 2003
    Post Count: 6

    Thanks Derek,

    We have a broker who has pulled out all stops for us more than once. As an ex-Bank Manager he’s good at making ‘Bank’ problems go away too. However, he does not personally own investment property and doesn’t quite get the importance of having properties as ‘stand alone’ in order to remain flexible, whilst reducing risk.

    We suspected that Financial Advisers strongly pro-property would be slim, but thought this might be a great venue to find one.

    Suspect we should be looking at a complete restructure. ie: perhaps trusts.

    Julie & Glenn

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544
    Originally posted by hghaas21435:

    However, he does not personally own investment property and doesn’t quite get the importance of having properties as ‘stand alone’ in order to remain flexible, whilst reducing risk.

    I am fairly certain the brokers who regularly post here are also property investors and would be cognisant of your need for risk reduction, while balancing this with maximising borrowing capacity. Check a couple of them out – won’t cost you anything.

    We suspected that Financial Advisers strongly pro-property would be slim, but thought this might be a great venue to find one.

    Steve Navra http://www.navra.com.au is pro property at the heart of his investment portfolio. Be warned Steve is a grwoth focussed investor with a couple of tweaks in his armoury to maximise rents and cashflow.

    Suspect we should be looking at a complete restructure. ie: perhaps trusts.

    A trust structure is best done in consultation with a specialist tax accountant. There are some goodies in Sydney and Mebourne. Julia in Brisbane will also be able to help.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Julie & Glen,
    Agree with Derek, also, keep in mind the costs you will incur when transferring existing property into a Trust, you may find (after consultation with a trust savvy accountant such as Dale G) http://www.gatherumgoss.com/ that it may be more economical to hold only future acquisitions in a Trust. Good luck.

    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:0402483216
    Ph:1800 820 500
    VICTORIA

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

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Julie & Glenn,

    If you don’t mind using someone interstate, try Guests accounting http://www.guests.com.au. They were recommended to me by a very large property developer and have only just started doing work for us. I’m more than happy with the service they have given us, which is a big step up from our previous accountants. They are at very top end of the market in terms of knowledge on property and tax in particular.

    Regards
    Alistair

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    If you have enough equity, all you have to do is to apply for release of security for your properties (just hope your not with the NAB!). Maybe one at a time would be the way to go.

    Terryw
    Discover Home Loans
    Mortgage Broker
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of hghaas21435hghaas21435
    Member
    @hghaas21435
    Join Date: 2003
    Post Count: 6

    Derek, Steven, Alistair & Terry,

    As new contributors to this forum we are impressed and grateful for all the responses and help you have offered.

    Definitely gives us somewhere else to go fishing!

    Much appreciated.

    Glenn & Julie

    Profile photo of mummum
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    @mum
    Join Date: 2004
    Post Count: 104

    Hi hghaas21435

    If your problem is cross collateralisation, the simplest way to fix the problem is to either change to a Lender who doesn’t cross collateralise (there are some, email me for info) or to spread your portfolio over at least 2 lenders.

    Margaret Wilson
    [email protected]

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