Hi everyone help needed to understand the best way to finance preferably without cross collaterising.
Parents own prop 1 outright worth around $260,000
$50000 loan taken out with rams 6yrs ago for deposit on my house (daughter) house used as securityJust had offer accepted on 1st ip at $152,500 need to borrow deposit from prop 1.
Ip needs around $5000 in reno’s and will borrow fees also.St George want to cross collaterise the two properties taking $50,000 & $10,000 for deposit from prop 1 with a new loan of $152,500 + fees.
We do NOT want the two properties tied togeather if possible.Fathers income is $54,000 no debt, cr cards etc other than $50,000 loan to rams
what’s the best way to proceed??
Simple- you just tell them you dont want to Cross…it’s your choice- if they can cross it means you have enough equity in the properties…so you can simply
1. Cash out the “Equity” and use this as the deposit for the purchase – make sure it’s a split loan with a separate offset account.
So you simply let St George bank know you dont want to cross and do the above…and they will do it, it’s not up the staff to say yes or no ( even though the staff may say no…as they do get extra “points” + it makes it easier for THEM for crossing the loans)
P.s check the letter of offer before you sign, make sure it only has ONE address as the security .
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
I agree, Just tell them.
If they won't play ball then set up a LOC on the existing property with st George and then for the new house go to another bank and borrow 80%.
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
Agree with the above – if STG don't want to do it, there are plenty of other lenders who are hungry for business at present – some of which are offering cash rebates to offset the costs of refinancing to them.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
How about pay back your parents the 50k.
Hi, Thanks everyone for your advice.
Regarding the 50k this is made up of a few things not just my deposit so my portion will be finalised soon. As this is under mortgage we were trying to roll into one loan for ease of payment using the ipp as security and will therefore look more closely at equity use and having an offset account. I was not happy with cross collaterising but when they talk their talk they make it make sense which is why i wanted to confirm my opinion of it not being nessesary.Thanks guys
Hi, i would like to buy an investment property but i really would like to know people doing to buy 1 after each other.
pls give me some advices??
thanks
ildi shoot me an email and i will email you an article i wrote for the API Magazine on just that topic.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ildiko wrote:Hi, i would like to buy an investment property but i really would like to know people doing to buy 1 after each other.
pls give me some advices??
thanks
The ability to purchase and hold multiple properties comes down to your ability to service the debt – which is a combination of your income plus the income generated by your IPs.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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