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From: Mike .
Choices
From: Micky B
Date: 13 Feb 2001
Time: 12:12:15
Hi all
My wife and I are purchasing our first home and are looking for some advice on the best way to structure the loan. The choice is between a line of credit (Portfolio Plus, we're with St George) or your standard ole home loan. There are 2 variables, one is that we are currently buying two IPs, one +ve and one -vely geared. The other is that we are going to rent out the place we will call home for two years before we move in. We will be borrowing the full amount plus costs.
With the cashflow from 3 properties plus my income I am strongly leaning towards the LOC, but in order to get the LVR below 80% in order to qualify, we will have to have all the properties on the mortgage. From reading this forum I know this is a big no no, but is the flexibility and the savings of a LOC worth it? I am in a secure job and have dealt with the same manager at the bank for the last 7 years. We will be desparate to pay off this house ASAP as there will be no more IPs until we do.
Thanks for any replies.
Micky B
Choices
From: Micky B
Date: 13 Feb 2001
Time: 12:12:15
Hi all
My wife and I are purchasing our first home and are looking for some advice on the best way to structure the loan. The choice is between a line of credit (Portfolio Plus, we're with St George) or your standard ole home loan. There are 2 variables, one is that we are currently buying two IPs, one +ve and one -vely geared. The other is that we are going to rent out the place we will call home for two years before we move in. We will be borrowing the full amount plus costs.
With the cashflow from 3 properties plus my income I am strongly leaning towards the LOC, but in order to get the LVR below 80% in order to qualify, we will have to have all the properties on the mortgage. From reading this forum I know this is a big no no, but is the flexibility and the savings of a LOC worth it? I am in a secure job and have dealt with the same manager at the bank for the last 7 years. We will be desparate to pay off this house ASAP as there will be no more IPs until we do.
Thanks for any replies.
Micky B
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