Its a familiar question that.
Colin (FMS) who has posted above knows his stuff and has is separatist WA stripes, and other people report he doesnt bite.
I dunno that he'd like to be known as an expert, but he is certainly a specialist.
ta
rolf
Restructuring Loans to Avoid Cross Collatorisation
- Thread starter justlearning
- Start date
Its a familiar question that.
Colin (FMS) who has posted above knows his stuff and has is separatist WA stripes, and other people report he doesnt bite.
I dunno that he'd like to be known as an expert, but he is certainly a specialist.
ta
rolf
I expected youd ask about worstpac - they are one of the ones that has the repayable on demand clause last time I looked.
Im ok with some LOC lenidng for captilising purposes, and there are some simplistic ways you can lower the risks,and still get most of the benefits, especially if your core equity is with WBC.
On the capping interest stuff........... id suggest you speak with a really good accountant about that ............
ta
rolf
the "you dont know what you dont know principle" i guess.
It can be tough for a borrower that has been poorly structured by a broker to get out of the malaise , however a good analogy offered to me the other day.........if your car service folks do a rubbish job, most peops wont go out and buy the manual for a 2013 corolla and buy the rickety jack stands and the Kmart oil............but because financial structuring looks less complex and "dangerous" we are quite ok to have a go at it , they will find another dealer or service place that they can work with.
ta
rolf
I like that analogy. I think I will use it!
Perth Mortgage Broker
Hi JL,
I am happy to meet with you face to face. Our office is south of the river close to Freo.
You are welcome to give me a call if you want to discuss first. We can restructure with no cross-collateralisation. I understand debt recycling as some of our clients are referred by financial planners but you do need to get financial advice around that. It wouldn't be needed in order to restructure.
Sounds like we could negotiate on rate for you as well.
Kind Regards,
Tracey
Hi JL,
I am happy to meet with you face to face. Our office is south of the river close to Freo.
You are welcome to give me a call if you want to discuss first. We can restructure with no cross-collateralisation. I understand debt recycling as some of our clients are referred by financial planners but you do need to get financial advice around that. It wouldn't be needed in order to restructure.
Sounds like we could negotiate on rate for you as well.
Kind Regards,
Tracey
This is quite interesting, if JustLearning has 4 IP's each with a little bit of equity in it such as the following
IP#1 - $20,000
IP#2 - $15,000
IP#3 - $30,000
IP#4 - $10,000
then if the bank created on large LOC of a limit $75,000, this will surely make things easier in terms of managing /using just the one account for investment purposes BUT in the future how will you know which equity was pulled out of which property, and also which IP would the bank be securing the one LOC account to?
In this case the bank would use of 4 properties as security for the one LOC. Not recomended
But you could keep a spreadsheet record of what you used for what property
Ouch! that would hurt!
so either you have 4 separate LOC's for each property and use each to put expenses against each property...perhaps all with different lenders, or perhaps just have a separate LOC against your PPOR with a large limit (since you normally have heaps of equity in) and then just use this separate account for all your four IP's expenses. But oooo, this does sounds like you can then potentially also lose even your own PPOR if things go really sour?
You never wrote a homeside fixed or interest only loan back in the day?
Yes, i have. But never seen any of these called in?
Well I managed to get my partner to come around to the idea of using a broker...we're currently using property finance online who have been great. We're splitting the loans between ANZ and Bankwest. All loans now sit at 80%or lower...no cross collatorisation. Separate loans have been setup against equity in a couple of the properties to cover the short fall in others.
Everything was revalued...i was pleasantly surprised, especially by the values of the old front houses whose backyards were cut off for a rear build.
Concurrently we've been busy having a new baby. We had a little girl arrive in December.
Everything was revalued...i was pleasantly surprised, especially by the values of the old front houses whose backyards were cut off for a rear build.
Concurrently we've been busy having a new baby. We had a little girl arrive in December.
Has nothing to do with being a broker or banker. Either can and do the wrong thing. You have to have someone who you can trust to do whats best for you. If
Westpac banker has obviously done the wrong thing, I would hope you're at least using a different banker. If you don't trust the current banker to set the loan up correctly for you, then you shouldn't be using them. If you aren't confident that Westpac can provide a banker that you can trust use a broker or a different banker/bank.
It shouldn't be your responsibility to ensure that the loans are set up correctly for yourself.
Great work sounds like you got the result you were looking for, actually little bit better
By the sound of it you now have someone assisting you with your finances that you can trust. Awesome stuff.
I disagree, at some point a banker isnt going to be able to do the right thing by the client.
They arent going to know the limitations of their own banks policy, and they are certainly not going to send a client over the road to another lender for risk mitigation/diversification.
Sure at 2 to 3 investment properties a competant banker can set up some non xcolled loans, but after that using a banker solely would be doing the client a great diservice IMHO.
They arent going to know the limitations of their own banks policy, and they are certainly not going to send a client over the road to another lender for risk mitigation/diversification.
Sure at 2 to 3 investment properties a competant banker can set up some non xcolled loans, but after that using a banker solely would be doing the client a great diservice IMHO.
Thats the problem right there Brady. It is up to us to know what questions to ask before we engage a professional. Thats what this forum is about. We can find out the questions we didnt know we had to ask.
Congrats on the bubba and untangling the cross coll spider web.
