Hello everyone!
This is my first time in any forum and I thought I ' ll give it a try to get some answers to my questions.
I have accumulated with my partner over the last 5 years 2 investment properties ( $300k/NSW + 350K/QLD)on I.O, Variable rate and the same for our P.P.( 450k/QLD), All purchased with LMI with 3 different Lenders from the big 4's.
Our joint income is around $ 100k with 2 babies and we want to play our cards right for the next market upturn
We have now 2 options :
Trying to bring our Portfolio's LVR under 80 % or under and THEN consider to consolidate all properties under one Lender that offers Global Portfolio with a line of credit to pay off our PP faster and use futur available equity to buy again.
Paying LMI again on the Portfolio value with a new Lender is not something I would do really and would have to go under the 80% LVR to avoid this.
Our goal is to keep on increasing our asset base (net worth) as agressively as we can in the next "boom" and I am asking you readers, if it is in my interest to stay with different Lenders( our present situation) and keep on freeing some equity and getting top ups( with LMI).
The first option is adding more Tax benefits but I need someone good with numbers to point out the mid to long term difference in growing our portfolio.
Certainly would never bring all loans under a Global Line of Credit which means you would be cross collateralising the securities. This is a Destiny Financial Solutions recommendations and is surrounded with issues for clients wishing to build a decent portfolio.
Keep the loans separate and you wont be hit by a single lenders serviceability wall.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Certainly would never bring all loans under a Global Line of Credit which means you would be cross collateralising the securities. This is a Destiny Financial Solutions recommendations and is surrounded with issues for clients wishing to build a decent portfolio.Keep the loans separate and you wont be hit by a single lenders serviceability wall.
Thank you for your words of wisdom .
I believe that in the first option the added tax break in cross collateralising using the capitalised interests benefits is not worth it for me as I plan to stay aggressive with investments.
Maybe at a later stage ,when my PP will have a lot of outstanding debts and I decide to be more conservative.
As to where I got the idea .
I didn't get it from DESTINY ( which I met and disliked the concept at the time, 2 years ago ) but Canterbury Property Services and Weatherford Financial .
All the best and again thank you
Well it seems you have already had your question answered. I would have said the same about NOT going with one lender because you are increasing your risk.
You may want to look at purchasing all future properties in trusts. You said you want to be aggressive. If you are buying properties if your own name then you are opening yourself up to all sorts of litigation. If you are sued on one property then ALL your properties can be taken from you. So do the right thing and look (seriously) into using trusts for all future investments.
Good luck
Ryan McLean
http://CashFlowCapital.com.au
Positive Cash Flow Properties Are Just a Click AwayRyan McLean | On Property
http://onproperty.com.au
Email MeThank you for the advice.
One thing that amazes me when I do my tax return and ask The acountant about Asset protection( still looking for a good one by the way ) is that all of them have told me that trust or no trust, if there is trouble my way, the assets won't be protected.
I still believe it is the way to go after reading a few books on the topic and appreciate you motivating me to take this step in the futur.
Does anyone know of a good accountant in North Brisbane or anywhere close really ( I don't mind the drive for top service)with knowledge on asset protection and double tax agreement , being French.
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