All Topics / Legal & Accounting / Multi purpose loan HELP

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  • Profile photo of huilohuilo
    Participant
    @huilo
    Join Date: 2015
    Post Count: 21

    Hi All,

    I bought my first ip1 then had equity release done on it. i then made a split of 55k for ip2 for deposit + buying costs.

    ip1
    1 loan (has 40k redraw available)
    2 loan (55k split for ip2) (has 8k available) didnt end up using whole 55k

    ip2 then got revalued and pulled 30k

    ip2 loan
    ip2 loan (30k redraw available)

    all up equity is 78k, I will want to use this money for my next purchase how much? i don’t know yet assuming more then 40k though.

    my aim is to not have a multi-purpose loan etc for it to get messy and get confused which money came from which property/mortgage. i know as it’s all for investment purpose atm there wouldn’t be any tax issues if i just put all equity into one account and then paid the deposit etc but i want to know whats the best way of doing this?

    my thoughts are the 30k redraw gets paid into the 55k split account so thats brings 3 loans down to 2. This is where i get confused.

    i’ve been told it’s a good idea if u borrow from ip1 for ip2 for deposit once ip2 grows pay back ip1 so that the loans are only against 1 property etc it makes it cleaner.

    any opinions would be greatly appreciated.

    Thanks,Huilo

    • This topic was modified 3 years, 9 months ago by Profile photo of huilo huilo.
    Profile photo of Jess PeletierJess Peletier
    Participant
    @jaylou
    Join Date: 2009
    Post Count: 12

    I can see what you’re hoping to do. It’s a little complex but can be done to a degree. Which lender are you with? Some are easier than others to do this.

    Jess Peletier | Seed Financial
    http://www.seedfinancial.com.au/
    Email Me | Phone Me

    Mortgage Broker - Perth and Australia wide

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    As Jess stated the lender you choose will play an important role. Some lenders will let you split and merge facilities post settlement where others require a full assessment to do so.

    To avoid confusion with multiple loan splits I clearly label each split (via internet banking portal) appropriately and use the available funds related to that property only whilst being careful to clearly document each outgoing payment with appropriate commentary.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Where did you ‘pull the equity’ to?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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

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