Line of credit/equity

Viewing 4 posts - 1 through 4 (of 4 total)

grumblepie
Participant
@grumblepie
Join Date: 2013
Post Count: 8
February 16, 2014 - 9:52 pm
Hi I've got a large portfolio some of my loans are cross securitised and I've used equity to purchase others. Some of the properties LVR are worth double what i owe so i was curious about redrawing some of the money out of one of the loans for another deposit for a new PPOR. I understand you can do it but its hard around tax time. What is a LOC and will it be possible since some of the loans have used equity from the portfolio.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
February 16, 2014 - 10:08 pm
Hiya
It's a tough question to answer without knowing how your portfolio is actually structured.
When properties aren't crossed – it's generally a matter of getting a valution carried out on a property and if there's sufficient equity, you can access it.
With crossed collaterised properties – you usually have to get the entire portfolio revalued and if there's sufficient equity, you can access it.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
Modernity Investing
Participant
@mark-coburn
Join Date: 2006
Post Count: 181
February 17, 2014 - 3:26 am
It might be time to think about sorting out your portfolio's financing. In your position you should have all your properties setup so you are able to access maximum equity with a minimum of admin and time delay.
I would also advise you to consider working on a strategic portfolio plan as part of your over all wealth strategy. A good property investment advisor should be able to help you do all of this.
Modernity Investing
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Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 17, 2014 - 9:51 am
Hi Grumble
Congratulation on building such a portfolio however it sounds like your lending is rather messy.
I built my property portfolio which currently stands at $25M + and 43 properties by carefully planning and structuring my lending.
Bar the shouting we have repaid the entire debt by adopting a couple of strategies which we now adopt when working with our property and finance clients.

Despite what Mark stated a Property Investment adviser cannot provide you with any financial advice unless they are a Licensed Financial Planner.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender