I am about to buy first IP this month and am in the process of formalising a loan and a structure to handle ongoing purchases of properties.
I really want to set this up right from the start as I am getting conflicting views from my broker and from what I am reading and am just looking for a second opinion or recommdations.
Currently I own and owe nothing. I also have a 50K Cash deposit. My long term goal is to buy an IP every 4 months for the next 3 years as well as a PPOR some time next year after hopefully gaining some equity to have a portfolio of approx 12 properties to eventually sit on for 10 years+. Average price would be < 300K, cash positive and across the country (different regions/activities).
The first property is 250K and at the moment looking at Portfolio LOC with ST George. This would allow flexibility for additional purchases and easier management and I guess the original appeal.
My feeling now though is that whilst that product (or a similar LOC) allows this flexibility it will be cross collaterised (unless you request and ensure otherwise) and that is a no-no later on.
On the other hand having ongoing muitple IO loans with an offset/redraw with either a different lender or same will give you more freedom & control but adds the overhead off multiple accounts/fees and lenders etc.
Any thoughts?
My feeling now though is that whilst that product (or a similar LOC) allows this flexibility it will be cross collaterised (unless you request and ensure otherwise) and that is a no-no later on.
On the other hand having a IO loan with an offset
I really want to set this up right from the start as I am getting conflicting views from my broker and from what I am reading and am just looking for a second opinion or recommdations.
Currently I own and owe nothing. I also have a 50K Cash deposit. My long term goal is to buy an IP every 4 months for the next 3 years as well as a PPOR some time next year after hopefully gaining some equity to have a portfolio of approx 12 properties to eventually sit on for 10 years+. Average price would be < 300K, cash positive and across the country (different regions/activities).
The first property is 250K and at the moment looking at Portfolio LOC with ST George. This would allow flexibility for additional purchases and easier management and I guess the original appeal.
My feeling now though is that whilst that product (or a similar LOC) allows this flexibility it will be cross collaterised (unless you request and ensure otherwise) and that is a no-no later on.
On the other hand having ongoing muitple IO loans with an offset/redraw with either a different lender or same will give you more freedom & control but adds the overhead off multiple accounts/fees and lenders etc.
Any thoughts?
My feeling now though is that whilst that product (or a similar LOC) allows this flexibility it will be cross collaterised (unless you request and ensure otherwise) and that is a no-no later on.
On the other hand having a IO loan with an offset