From: Andrew G
Hi guys,
Just a query regarding the structure of a LOC. I have a home and IPs etc., but have never really known about LOCs. So from point 3 onwards I'm guessing ..... Would you set it all up like the following?
Theoretical Example :
1. I have a savings account with a bank - account 'a'.
2. I buy a house, P&I loan - account 'b'. Payments go from 'a' to 'b' each fortnight...
3. I setup a LOC, bank account 'c'. (I get a bigger LOC depending on equity in my house?)
4. I purchase an IP, I/O loan - bank account 'd' - rent gets paid by tenant/property manager into 'c' which the bank uses to pay regular interest payments to 'd' each fortnight etc.
5. I purchase another IP, I/O loan - bank account 'e' - rent gets paid via the same method as the last one, and it keeps going like this for as many IPs as you buy.
The above assumes you are starting from scratch, which I am not, but I'm still curious if this is the 'general' way people structure their bank accounts etc.
Thanks,
Andrew.
Hi guys,
Just a query regarding the structure of a LOC. I have a home and IPs etc., but have never really known about LOCs. So from point 3 onwards I'm guessing ..... Would you set it all up like the following?
Theoretical Example :
1. I have a savings account with a bank - account 'a'.
2. I buy a house, P&I loan - account 'b'. Payments go from 'a' to 'b' each fortnight...
3. I setup a LOC, bank account 'c'. (I get a bigger LOC depending on equity in my house?)
4. I purchase an IP, I/O loan - bank account 'd' - rent gets paid by tenant/property manager into 'c' which the bank uses to pay regular interest payments to 'd' each fortnight etc.
5. I purchase another IP, I/O loan - bank account 'e' - rent gets paid via the same method as the last one, and it keeps going like this for as many IPs as you buy.
The above assumes you are starting from scratch, which I am not, but I'm still curious if this is the 'general' way people structure their bank accounts etc.
Thanks,
Andrew.
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