i found the only way i could start buying IP’s was to x coll against my PPOR i ahve since purchased a further 3 properties in the same way.i guess what i am saying that without this i wouldnt have been able to borrow a cent.once i obtain 20% equity i will bre uncrossing or refinancing with another lender.I cannot stress enough that this was the only way i could get started as i kept getting knocked back on LMI.
anyone care to share their thoughts.never never never sell
Yes.
Your advice was poor if you were being knocked back on LMI.
Crossed or not, if the total borrowings exceed 80% in most cases, there will still be LMI. If your borrowings were under 80%, you could have done the loans as stand alone.
The main reason I am against cross-collateralising is because if things go bad, the lender will sell the most ‘saleable’ property and you will have no say in the matter. If they are stand alone, you can focus on making payments on the properties you want to hang on to and the risk will lie with the ones you are not so concerned about. Good management avoids losing anything of course.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Hi HR,
A few months ago you were having problems with your lending institution refusing to release equity from your x-colled portfolio, as posted here,
https://www.propertyinvesting.com/forum/topic/10129.html
I think your case outlined in the above thread is a prime example of the pitfalls of cross colaterisation.Regards Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi HR,
Both Rob and MMM raise the biggest pitfall re: your post. In my experience I was faced with the same problem. By separating the titles you also eliminate an even bigger problem. Pronounciating the term ‘cross collateralisation’!
Cheers,
Gatsby!HAHAHAHAHAHAHA – you crack me up!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Cross x-ing is not too bad – in a rising market. Properties can be uncrossed fairly easily. My second property was even cross collateralised with my first. But it just makes things much more flexible if you avoid crossing!
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It is only bad when things go a bit sour or you are looking to move quickly with property dealings. Anyone that has cross collateralised properties must remember that the most saleable property will be sold first in the event of a lender taking possession!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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