Guys, there is some good help here so I thought I might post about my own situation. I have been acquiring properties since 2002 and have built up a reasonable portfolio of over 10 properties in Brisbane. My debt is high (but less than 80% LVR), but I have reasonable servicability.
My loans have built up over time and I now realise that its probably not structured the best way. For example, 5 of those properties are cross collateralised. Furthermore, that cross collateralised loan is split into 50k bundles and have had fixed interest rates applied to them. The rationale here was that fixed interest was lower than variable at the time. To avoid the 10k repayment limit of fixed loans, the large loan was split into 50k bundles. The fixed interest rate period will mature soon.
Anyway, it seemed like a good idea at the time.
There are other issues.
- we started to buy in family trust structures w/ corp trustee a few years ago to minimize property tax
- I purchased a home with my brother a few years ago as an IP. However, to get the best interest rate I had to guarantee the entire amount. He pays for his half of the loan and receives half the income. This obviously impacts my debt ceiling.
- Two of the properties are rented by the room (eg: student accom)
- Each purchase was done slowly and carefully and there are no unitblocks/duplex pairs in the portfolio.
Goals:
1) Need available funds to continue investment. I haven't hit a wall yet but this might be soon. The funds will be used to do a development on an existing property or continue to buy and renovate properties.
2) Need to structure the loans in a more meaningful way and optimize for tax.
3) Would like the best interest rate, currently best I can find is 4.60 with a big four bank. However, I would like to focus on (1) and (2) first.
I'm not necessarily looking to refinance with another lender (yet). I'm looking to get some advice from those in the game. Since I'm not looking to refinance, is there some sort of (maybe paid) service I can get?
My loans have built up over time and I now realise that its probably not structured the best way. For example, 5 of those properties are cross collateralised. Furthermore, that cross collateralised loan is split into 50k bundles and have had fixed interest rates applied to them. The rationale here was that fixed interest was lower than variable at the time. To avoid the 10k repayment limit of fixed loans, the large loan was split into 50k bundles. The fixed interest rate period will mature soon.
Anyway, it seemed like a good idea at the time.
There are other issues.
- we started to buy in family trust structures w/ corp trustee a few years ago to minimize property tax
- I purchased a home with my brother a few years ago as an IP. However, to get the best interest rate I had to guarantee the entire amount. He pays for his half of the loan and receives half the income. This obviously impacts my debt ceiling.
- Two of the properties are rented by the room (eg: student accom)
- Each purchase was done slowly and carefully and there are no unitblocks/duplex pairs in the portfolio.
Goals:
1) Need available funds to continue investment. I haven't hit a wall yet but this might be soon. The funds will be used to do a development on an existing property or continue to buy and renovate properties.
2) Need to structure the loans in a more meaningful way and optimize for tax.
3) Would like the best interest rate, currently best I can find is 4.60 with a big four bank. However, I would like to focus on (1) and (2) first.
I'm not necessarily looking to refinance with another lender (yet). I'm looking to get some advice from those in the game. Since I'm not looking to refinance, is there some sort of (maybe paid) service I can get?