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Since Terry W has spent so much time answering questions already allow me
Cross Collateralisation is when you use one property as security to purchase another. ie. You may have 50k equity in your principal place of residence (PPOR) and want to use this equity to purchase an investment property, so the bank will suggest you use the 50k equity in your pricipal residence to secure a loan for the investment one. This is a bad idea because obviously if things go ARSE UP as they say, you risk losing not only your investment property but also your principal place of residence as the bank sells things up to recover their money! Banks of course love to do things this way because it gives THEM more security. A more desirable way to do things would be to simply draw down against the equity you already have in your PPOR via a line of credit loan and then using that money as deposit for the purchase of the investment property.blogs wrote:THEHEATH wrote:Ocean? City in view? hahaa. Yeah ok, so there's "werribee beach" lol and the city can be seen from afar because there is nothing out there to spoil your view! But I'm just being a bitch, the real clanger in here is that you said it's only 15.20 mins uninterrupted on the on the highway-true may it be, how long do you think it will take you during peak hour when people are trying to get to work?? The traffic banks back and you're looking at a 45 minute trip in most cases.As oposed to anywhere else that is built on the bay? lol such a typical eastern suburb tosser comment. Thats o.k though becuase while all you turkeys have been paying through the nose to live in a 3 bedder an hour out of the cbd I have been buying up close to the city in the west and have already seem my wealth go through the roof-its only common sense that people with a budget of say $400-$500k are guna look at inner west compared to outer east and buy inner west and drive it up even more. You just keep on enjoying your south eastern car park
So I should expand. Obviously I wasn’t bagging the west. I was merely pointing out some facts, the most crucial of which is that you can get to the city in 15-20 mins. Living in Williamstown and travelling over the West Gate daily I know this is about how long it takes me to get to the CBD so there is no way in hell you are going to get there in 15-20 from truganina.
blogs wrote:THEHEATH wrote:Ocean? City in view? hahaa. Yeah ok, so there's "werribee beach" lol and the city can be seen from afar because there is nothing out there to spoil your view! But I'm just being a bitch, the real clanger in here is that you said it's only 15.20 mins uninterrupted on the on the highway-true may it be, how long do you think it will take you during peak hour when people are trying to get to work?? The traffic banks back and you're looking at a 45 minute trip in most cases.As oposed to anywhere else that is built on the bay? lol such a typical eastern suburb tosser comment. Thats o.k though becuase while all you turkeys have been paying through the nose to live in a 3 bedder an hour out of the cbd I have been buying up close to the city in the west and have already seem my wealth go through the roof-its only common sense that people with a budget of say $400-$500k are guna look at inner west compared to outer east and buy inner west and drive it up even more. You just keep on enjoying your south eastern car park
I live in Williamstown.Want me to draw you a map?
Cross Collateralisation is when you use one property as security to purchase another. ie. You may have 50k equity in your principal place of residence (PPOR) and want to use this equity to purchase an investment property, so the bank will suggest you use the 50k equity in your pricipal residence to secure a loan for the investment one. This is a bad idea because obviously if things go ARSE UP as they say, you risk losing not only your investment property but also your principal place of residence as the bank sells things up to recover their money! Banks of course love to do things this way because it gives THEM more security. A more desirable way to do things would be to simply draw down against the equity you already have in your PPOR via a line of credit loan and then using that money as deposit for the purchase of the investment property.
