All Topics / Help Needed! / Line of Credit experience

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  • Profile photo of BertieBBBertieBB
    Participant
    @bertiebb
    Join Date: 2010
    Post Count: 1
    June 30, 2010 - 12:42 pm

    thanks guys I am a new subscriber & have been following this thread with interest. We are just about to launch into property investment and have been keenly searching for real life experience advice such as appears on this site as depending on which "gurus" book you read, the advice is often quite contradictory in regards to best method of finance, cross collateralistion of loans, "must have" structures etc. I think they all try to mysticise what is a pretty straight forward process (given the correct professional advice). The devil is in the detail of the homework.

    cheers
    bbb

    Profile photo of CorieCorie
    Participant
    @corie
    Join Date: 2009
    Post Count: 114
    June 30, 2010 - 1:58 pm

    We have a LOC of credit account that we use for investment purposes only. Initially got it setup to access the equity in exisiting IP's we had.  We use it as 20% deposits on new IP's and then get another mortgage for the balance.

    You need to be very disciplined in making sure the interest is paid promptly each month.

    We did get advised to split the LOC into two accounts, which gives us part we use for investment purposed and one we have for personal purposes (with just a small amount in it) in case we need it, and we don't get into any trouble with the accountant and the ATO in splitting out interest costs between investment and non-investment.

    Our LOC's are with ANZ and we don't have any minimum balances and can use the account as a day to day transactional account and even have a debit card to use with it. 

    Profile photo of jacqui_03jacqui_03
    Participant
    @jacqui_03
    Join Date: 2010
    Post Count: 142
    July 4, 2010 - 4:10 am

    Does anyone know if there is a maximum amount of 100% offset accounts you can get for free under the package with Westpac? I know you can only have 1 account per loan however if I was to take out another investment loan with Westpac would I have to pay a monthly service fee for another account? Is it possible to link the existing account to a new loan?

    Profile photo of BankerBanker
    Participant
    @banker
    Join Date: 2010
    Post Count: 371
    July 5, 2010 - 2:04 pm

    Each loan can have an offset account.

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