House Strategies

You offer property as security against a debt. If you go bankrupt the lender takes your house.

• Positive is interest rate is lower than unsecured debt and over a greater time frame.

Usually used when a person has lots of equity in their house and has a massive load of debt on unsecured loans like credit cards, personal loans, store card loans, loan shark loans, ect
These loans are consolidated into one loan against a property and all the unsecured lenders are paid out.
Or added to an existing secured loan like an existing mortgage or refinanced mortgage.

Negatives

• If you go bankrupt you lose your house.
• If you can't control your spending you just clock up more unsecured debt on your credit cards, ect
• You may not have enough equity in your house to do this.
• You may already have a bad credit rating and have to use a non bank and pay a higher interest rate than you normally do with secured debt.

see
http://www.creditcard-debtcoach.com/Secured_Debt_Consolidation.html
http://ezinearticles.com/?Secured-Debt-Consolidation-Loans:-Bringing-Down-Your-Debt-Count-to-Zero&id=115373

You may be thinking of cross co-laterisation across many properties

You take all your properties and use them all for security against the loans.
This way you do not need a deposit to buy more property just increased equity.
If you go bankrupt or can't pay a loan on any of these loans you could lose all your properties.

Buy the next property in your personal name or a DFT.

Accessing the equity should be ok subject to serviceability.

Your

Buy the next property in your personal name or a DFT.

Accessing the equity should be ok subject to serviceability.

Your

mortgage broker

How many times can you post the same answers …………..

Got there in the end!

There would be no GST issues, as it is a residential house. There would be stamp duty consequences on transferring fromn yourself to a trust. There MAY be capital gains consequences, as the PPOR was previously held in a trust. I'd need more details to see what the CGT would be.

I'd suggest leaving your PPOR in your own name, and set up a Discretionary Family Trust for your investment properties.

Just having a trust doesn't help. If you own assets and get sued the assets are at risk. You need to get your trust to own these assets or take mortgages over the assets.

Or.. you can keep your LVR at 100%+ so they can't sue you because you have NO NET asset.

You also should consider the values of the properties. If you have plenty of equity merely cross collateralising the loans won't help much, you need to have the mortgage large enough to cover the whole value

BB

Have a reread. That strategy won't save you completely because you won''t be able to mortgage to 100% with a bank. Look at mortgaging to a trust.

You would need to get some legal advice, draw up agreements and trust deeds etc, so it is going to cost you a bit, but it should be a lot cheaper than stamp duty on a transfer.