Structuring Finance

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[email protected]
Member
@keithm2576-yahoo.com.au
Join Date: 2004
Post Count: 5
May 28, 2004 - 9:20 am
Hi, I hope I am in the correct forum for this question. I am looking at restructuring my finance to put myself in a better position to purchase a couple more IPs over the next 12 months. Currently owe about 150K on my home in NSW val approx. 400K (utilising a home equity loan). Also have an IP in WA val approx $175K, owe $142K on an int only loan. Both loans with same bank. Want to get rid of the requirement for guarantor over my home for the IP loan. Thinking on lines of splitting equity loan to give access to some equity for deposits when I find the right deal! Currently the IP in WA is negatively geared but would be interested in converting, if possible, to neutral or positive! Any assistance would be welcome. If required I can provide more details. By the way, my income is fairly low!
brahms
Participant
@brahms
Join Date: 2004
Post Count: 485
May 28, 2004 - 11:09 am
Hi Ket
your post..
Currently the IP in WA is negatively geared but would be interested in converting, if possible, to neutral or positive!
me too..please continue
cheers
brahms
If you don’t ask, the answer is no!!
tasman
Member
@tasman
Join Date: 2004
Post Count: 16
May 29, 2004 - 12:02 pm
Originally posted by brahms:
Hi Ket
your post..
Currently the IP in WA is negatively geared but would be interested in converting, if possible, to neutral or positive!
me too..please continue
cheers
brahms
If you don’t ask, the answer is no!!
brahms
Your favorite saying should more correctly read, “if you ask the answer is no!”
Tasman
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
May 30, 2004 - 1:19 pm
You could just apply for a release of security with your existing lender so that you home is not used as additional security for your IP (crossed securitised). The LVR is nearly 80% at the moment.
Then, you could borrow up to 80% of your home, using a LOC or redraw etc. This would release another $170,000 approx. which could then be used as deposits on a few more properties. But this would also depend on your serviceability (ie income to service the loans).
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au