Advice on IP loan structure

[Catspaw]

Hi there, would really appreciate some advice on the loan structure we have set up for IPs.
Hubby and I currently have two 1BR units close to Canberra purchase price 130K each. Both loans, 145K each, are with nab and secured against our PPOR. One unit is fixed principle and interest. The other is variable interest only. We own our PPOR (in Canberra) and the value is approx 850K. Now looking at buying a third IP probably in Brisbane. I think the way we?ve structured existing IP loans is probably not the best and wondering what we should do when buy a new one. Will be using a broker this time and hopefully they can help with our loan structure but wondering if anyone here has some advice.
Thanks.

 

[Rolf Latham]

Hiya

Id set up each of the units on their own loan, and then draw a LOC or the like on your PPOR to make up the difference

A decent broker like Jamie

http://www.passgo.com.au/

will be able to sort it out,and is local to you

your current credit adviser is looking after themselves and/or the lender in my opinion

ta

rolf

 

[Catspaw]

Thanks Rolf. What's an LOC?

I think you're right about the nab looking after there own best interest (as you'd expect I guess). Will be getting better advice next time.

Ps - I accidentally posted original message twice. Apologies. Learning slowly how this starting threads works.

 

[Colin Rice]

LOC is a Line of Credit usually secured against residential property.

It works in a similar manner to a credit card with an approved limit set in place.

 

[7DD4]

I would of taken some equity out of your PPOR, and used this as a deposit for all and any future investments. This way NAB hasn't got a strangle hold of all your properties and future borrowings.

 

[Rolf Latham]

This way NAB hasn't got a strangle hold of all your properties and future borrowings.

thats a very useful and graphic demonstration of the structure - I really like it

ta
rolf

 

[Terry_w]

I agree with Rolf. See Jamie and do a major restructure.

I suggest setting up a LOC on the PPOR - use this to pay down each Investment property loan to 80% of its current value, uncross each loan and then for future loans go for 80% LVR and get the deposit from the LOC.

CHange the PI loan to IO and get one offset account attached to one of the units. All loans IO and each could be with a different lender.

(assming your PPOR fully paid off..)

 

[Catspaw]

Thanks all, really appreciate your advice - its making sense. Our PPOR is fully paid off and we have a LOC up to about 200K - was about to go in and close off the loan but will keep it open pending chat with broker.