Hi guys
I'm posting this on behalf of my brother in law. I would appreciate any help/ideas/assistance. We are both stuck on this one!
I'll keep this as simple as possible.
Property 1 – Value is 600k. Paid off no loan.
Property 2 – Value 300k , 344k loan
LOC – 50k (has not been drawn down at all)
Bank has Property 2 secured against Property 1. My brother in law wants his title deeds back and to purchase Property 3 in next 6 months.
Can anyone comment on how structure the loans, the bank has said he cannot get his deed back for Property 2 untill the loan is reduced to 80%. His focus is to borrow funds to purchase property 3 whilst trying to get out of the cross colatteralising.
What would you do??
Thanks guys!
Hopefully you got my response in the finance section.
Richard Taylor | Australia's leading private lender
kyanfable wrote:Hi guysI'm posting this on behalf of my brother in law. I would appreciate any help/ideas/assistance. We are both stuck on this one!
I'll keep this as simple as possible.
Property 1 – Value is 600k. Paid off no loan.
Property 2 – Value 300k , 344k loan
LOC – 50k (has not been drawn down at all)
Bank has Property 2 secured against Property 1. My brother in law wants his title deeds back and to purchase Property 3 in next 6 months.
Can anyone comment on how structure the loans, the bank has said he cannot get his deed back for Property 2 untill the loan is reduced to 80%. His focus is to borrow funds to purchase property 3 whilst trying to get out of the cross colatteralising.
What would you do??
Thanks guys!
I am kind of in the same boat. I have a PPOR with a small loan.
IP1 was split into two loans in an effort by mr Banker to reduce my LMI. End result is a $250,000 loan secured against the IP and a smaller $54,000 loan secured against my PPOR. ( I know better now). Unfortunately the smaller loan of $54,000 has effectively locked me out of using that portion of my PPOR equity( Or another IP as i like to think of it).The only fixes i can see in my situation is.
1# revalue above total of both loans…….. Sadly not an option. Flat market still around here.
2#Pay down $54,000 loan……….. possible but best to pay remainder of PPOR first.
3# Sell IP………… Possible again as it is underperforming but would sell at a loss atm i believe.Do i want to crystalise the loss.
4# Move into the IP.
5# do nothingSounds funny but option 4 is probably my best option for a number of reasons.
#We intend to sell our current PPOR in the next few years due to a possible bypass going in 5o meters away. It will not happen for 15+ years but once it becomes public the damage is done.
#We would love to live in the the IP due to cbd living. Resteraunts 200 meters away. How cool is that.
#Cash from PPOR sale would reduce the current IP loan to stuff all as well as removing the cross-X plus the transfer off equity to new PPOR should release more funds to buy another IP or two.
# the new PPOR would respond well to a renovation turning it from an average property to a valuable property but a reno is something we could only do while we lived there not a tennant.So while your situation might be different. These are my options that you might be able to get something from.
Cheers.
I require more detail then is possible here, drop me an email or phone and I will be able to give you some guidance.
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