Hello all, I have a line of credit set up a few years ago to fund the first investment property. Early this year, we bought the second IP, which deposit amount taken from that line of credit account. I am thinking of splitting the line of credit account into two to reflect and to keep track of the cost of each IP. Is this a good idea or it's unnecessary? Can I get advise from anyone who has experience, please.
If the LOC has been used exclusively for IP purposes then I wouldn't bother splitting. It will involve a new application – so an unnecessary hit to your credit file.
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]
I like to keep things separate so each account relates to a specific property rather than having one account that relates to 2 or more properties.
Is the LOC with St George by any chance?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
It's with CBA. Personally I like to keep property account separately but if it's going to affect my credit profile. This is not a good way.
There is probably no reason to separate the loans for tax purposes at the moment. It would only be necessary if you were wanting to pay one loan down independently of the other – for example if you moved into one.
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
Ok. St George have a neat option whereby you can split the portfolio loan.
Having an enquiry on your credit file is not a bad thing per se – it becomes an issue when there are multiple hits in a short period of time (short period could be up to 12 months.)
I had an interesting one last week where an application was declined even though the applicants where strong applicants however in the last 12 months they had numerous credit enquiries. We got the exception and got the application approved because the applicants had purchased so many properties in the last 12 months.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
@sydney wrote:It's with CBA. Personally I like to keep property account separately but if it's going to affect my credit profile. This is not a good way.You'd need to submit a new app to split out the LOC. I don't think it's worth the time/effort and the credit file hit. It shouldn't be too hard to apportion the interest applicable to each property. It's important that you only use this LOC for investment related purposes.
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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