Hi All,
I just recently contracted to buy 2 +CF properties in NZ and am currently in the ‘due diligence’ period. I am investing through a NZ company/trust structure (company is the trustee, and my wife and I are the beneficiaries). My wife and I are directors of the company and are guaranteeing the loans, using our Aust income. I am dealing through a mortgage broker over there and have secured a loan ‘in principal’ for the two properties at 80% LVR (purchase price $560k).
My question relates to the type of loan which will best suit my circumstances. I am interested in continuing to grow our investment portfolio and keep as much of our debt in NZ as possible. I plan to continue to buy (and borrow) as much as I can with the existing entity, and then duplicate the structure when the bank starts to get a bit nervous. Given my objectives and circumstances, would the best loan type be a revolving credit with the limit set at 80% of the value of all the properties in my portfolio (as opposed to separate loans)? This would mean cross-collaterising the properties but I think would give me the most flexibility in repayments and buying additional properties in the future. Any thoughts?
Regards,
ItchyFeet
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