Currently owe about 65,000 on one property and looking at buying a second property for about 200,000 would it be better to take out 1 loan and pay off the first amount to combine them bot or keep them as two loans?
Thanks Mat.If one is your home loan, it would be better to keep them separate. Even if both are investment it would still be good to keep them separate. What if you wanted to sell one, or to move one to another bank later on??
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
yeah best to keep it seperate, cross-collateralising is never a good idea for the aboved mentioned reason. Its a common strategy of banks, Bankwest is one example. It increases your risk, if you have to sell your investment for whatever reason you will not be able to because you have the two loans as collateralised as one.
I definitely recommend you keep them seperate – most accountants prefer it that way too because it allows them to keep the profit/negative gearings aspects seperate for tax time too.
If you need to use the equity in your existing property there are ways of structuring the loan to keep them seperate too.
Anita Marshall
Advanced Finance Solutions
http://www.advancefinance.com.au
[email protected]Definitely separate!
With combined loan it works like a whole untouchable property portfolio.
But unless you want to buy and forget about for the next 25 years it’s now very usable. You’ll have to go through big hassle (read expenses) if you want to sell one property, or refinance, withdraw etc.From the top of my memory you only pay one account fees per combined portfolio. But the amount depends on individual portfolio. In my case with two mortgages 42,000 and 250,000 there would be just few cents a month.
Cheers
LesiaIn today’s current competitive climate we have lending institutions offering competitive rates with no application and ongoing fees,
in most situations there is no benefit in combining multiple securities into the one loan, I.e. cross-collateralising.Cheers
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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