How to make better use of assets

[Sydniygirl]

Hello. I need some advice about how to best structure our finances in order to purchase further IPs

PPOR $1,050,000 (valued Oct 2012) LOC $720,000 drawn down $700,000. $620,000@ IO fixed rate of 5.84% & remainder at variable IO rate of 5.59%
IP1 $485,000 (valued Oct 2012) LOC $505,000 drawn down $495,000 income $500pw IO variable @ 5.59%
IP2 $460,000 (valued same time as others) owned outright $465pw income

Also just purchasing first SMSF residential property
$20,000 in bank as savings

IP1 is company title
IP2 is strata title
There would be cross collaterisation with PPOR & IP1

Our combined salary is six figures.

Up till now have been worried about mortgaging IP2 but am thinking now it may be worthwhile to do this to get deposit for further IPs as long as we can pay back & fully own IP2 again at some time.

We are novice investors but feel in our situation we could be doing better.
What do others think?

 

[Terry_w]

I would change from LOCs to a term IO loan to get a lower rate (you say you have a LOC, but fixed??).
Uncross your properties now.
Set up a LOC on IP 2 - maybe a few. One to assist with the uncrossing and one for the deposits on the new properties.

Set up a 100% offset on your PPOR loan.

Company title complicates things slightly.

 

[Aaron_C]

Uncross first. Then do what Terry suggested.