Okay, so we're going to try and restructure our loans ourselves (I know, many will recommend a broker, but that's not the path we're going to take if we can avoid it).
We've been given the nod from Westpac to be able to restructure all of our loans to uncross them.
We're going to propose that each loan that has equity above 80% (4 properties) be setup with a LOC with the excess funds. (the bank proposed one consolidated LOC, but I understand it is more flexible to have a separate LOC for each property).
We have two properties with negative equity. We propose to draw down cash from the LOCs to pay down those loans to 80% LVR. One of the LOCs we'll draw from will be our PPOR.
The PPOR currently has a LOC which has been used to purchase shares...so that single line of credit will be used for shares as well as paying down a loan on another property as described above.
Can anyone see any pitfalls to this structure or any tax implications? Note all withdrawals from the LOCs will be for investment purposes (shares or property purchases).
thanks
JL
We've been given the nod from Westpac to be able to restructure all of our loans to uncross them.
We're going to propose that each loan that has equity above 80% (4 properties) be setup with a LOC with the excess funds. (the bank proposed one consolidated LOC, but I understand it is more flexible to have a separate LOC for each property).
We have two properties with negative equity. We propose to draw down cash from the LOCs to pay down those loans to 80% LVR. One of the LOCs we'll draw from will be our PPOR.
The PPOR currently has a LOC which has been used to purchase shares...so that single line of credit will be used for shares as well as paying down a loan on another property as described above.
Can anyone see any pitfalls to this structure or any tax implications? Note all withdrawals from the LOCs will be for investment purposes (shares or property purchases).
thanks
JL