Hi everyone,
I'm hoping to purchase 2x IP's by the end of 2010 and I'm just wondering what the pros & cons of a 'portfolio' loan is and if I need one or if my current split P&I PPOR / LOC Investment loan for deposits and costs split loan is simpler or more suitable for multiple properties I intend to hold.
I understand what you can do with a portfolio loan i.e. a primary P&I account and multiple extra separate loans for IP's, car, shares etc and the cashflows involved but I'm not sure if having multiple sub-loans like this just makes accounting messier or easier? The $ amounts will be no different just the number of sub loans that I use/don't use.
I can keep my current P&I PPOR split and convert it to a personal LOC and continue to pay it down but redraw for living expenses and a car loan as/when required and use the Investment LOC for IP deposits (as I originally intended)...
I'd value input from those with multiple properties as to what they find works for them? Likewise for MB's who see this stuff day to day.
Thanks in advance.
Jazza
I'm hoping to purchase 2x IP's by the end of 2010 and I'm just wondering what the pros & cons of a 'portfolio' loan is and if I need one or if my current split P&I PPOR / LOC Investment loan for deposits and costs split loan is simpler or more suitable for multiple properties I intend to hold.
I understand what you can do with a portfolio loan i.e. a primary P&I account and multiple extra separate loans for IP's, car, shares etc and the cashflows involved but I'm not sure if having multiple sub-loans like this just makes accounting messier or easier? The $ amounts will be no different just the number of sub loans that I use/don't use.
I can keep my current P&I PPOR split and convert it to a personal LOC and continue to pay it down but redraw for living expenses and a car loan as/when required and use the Investment LOC for IP deposits (as I originally intended)...
- Is this single investment LOC loan too messy from my accountants side?
- Or is this easier as all outgoing expenses and deposits are tracked in the one LOC loan statement?
- Does this then get messy in the Investment LOC if I use it for purchasing shares as well?
- What benefit would I get from going with a portfolio LOC vs PPOR/IP split LOC?
I'd value input from those with multiple properties as to what they find works for them? Likewise for MB's who see this stuff day to day.
Thanks in advance.
Jazza