Advice on loan structure for 3rd IP

[Catspaw]

Hubby and I have two 1BR units close to Canberra purchase price 130K each. Both loans, 145K each, with nab and secured against our PPOR. One unit is fixed principle and interest. The other is variable interest only. We own PPOR and value is approx 850K. Now looking at buying a third IP (not in Canberra). 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. We will be using a broker this time and hopefully they can help with our loan structure but wondering if anyone here has some advice to get us on the right track. Thanks in advance.

 

[Colin Rice]

Loans are crossed collaterlised so step one would be to make em standalone.

You could consider going interest only on both with a linked offset to one of the existing or new IP loans. Use the offset as a superman account and have all ingoings and outgoings from this account. Rent, salaries etc.

You could also consider splitting the properties between at least two banks or even three to avoid a concentration risk giving you more control of the assets rather than the bank.

Also could look at taking your PPOR to 80% LVR pending serviceability and taking future goals into consideration.

If you want to meet someone in the flesh Jamie M is out your way (Canberra) and could further embellish on the above;

http://somersoft.com/forums/member.php?u=14689

Cheers.

 

[Aaron_C]

Just fix the x-coll and the rest is easy.

 

[Terry_w]

Set up LOC on the PPOR and use this to pay down IP 2 to 80%. Also use LOC as 20% deposit on the 3rd IP. All could be at different lenders (PPOR loan and LOC at same). 100% offset on PPOR.

LOC could be another IO depending on the features.

 

[Catspaw]

Thanks all for your advice. We have an offset account set up for one of the loans and use that to put any income into. Will get in touch with Jamie M to discuss our options and borrowing capacity for 3rd IP.