Hi can any seasoned investors here help with explaining how to monitor a LOE and Loan structuring. I am looking for some mentoring or advice on how to control it all and wanting to build up a portfolio with a combination of shares and property.
thanks for any assistance.
Hi Pos
I think with Living off Equity you will need to set up some guidelines such as the maximum LVR you will ever go to. You will need to leave a buffer to allow for falling house prices occaisionally do valuations at least every year. Plan, early on, how you are going to keep on increasing loans too. eg. get an ABN and prepare for the eventual use of Low Docs even if you are PAYE. Also plan on how to maximise the deductibility of interest. Holding property in several different entities will help.
Terryw | 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
If you are also looking at shares or managed funds tro compliment your portfolio then you will also need to look at margin loans.
Whilst these may have a slightly higher interest rate over a secured loan against property they will free up extra equity and in most cases are done as nodoc loans.
With both of the mortgage insurers having "cash out" concerns at the moment you need to maximise your flexibility.
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
