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Investments and structuring of loans

Discussion in 'Real Estate' started by macper, 29th Nov, 2011.

  1. macper

    macper New Member

    11th Sep, 2011

    I would like some advice on how to structure my loans. I still live at my family home and have one investment property currently tenanted and worth about $425k, I owe $270k on the property.

    This property was newly constructed and hence I have two loans, let’s call these, land loan A and construction loan A with the one lender.

    I also purchased a block last year purchased for $160K which I signed up with the same lender (no cross collaterisation as i didn't really know much about it so I put a 20% deposit down out of my own funds to avoid LMI) and now I have land loan B.

    I have signed an agreement to build on the land next year, this will be another investment property and i am still in two minds about whether I should choose another lender for this new construction loan B and how I should structure my loans so I can get the best benefit from them.

    My mortgage broker has given me the option of either a) cross collaterising both properties to avoid paying a deposit or LMI b)Use the equity that I have but pay the LMI, which would be over $7k c) Pay 20% deposit down (which if I had to, I could do with my own funds) to avoid LMI.

    Could anyone shed some light on what course of action I should take?