01 Aug 2016

When you have used all the banks

With the investment properties usually because they’re in trusts – it’s not unrealistic to have one or two or three properties with an institution.

Sooner or later you are going to run out of institutions and you’ve really got to make it manageable for yourself to operate as well.

The primary thing you are looking at here is keeping your home which is usually something that you are vehemently protective of, away from any other external risk if at all possible.

The more properties you have, the more likely it is that you’re going to have a handful of banks that you deal with. And your home’s going to be separate with or without debt, depending on how you want to structure.

You’re home’s going to be very separate from your other properties and you maintain that that property stands alone from all of the others. You’re not going to have nine banks, but you might have three or four banks involved.

Remember the buffer

The things to remember here are the buffer. Try to always have a buffer.

So rather than maximum lend you’ve got $100,000 that’s personal and you’ve got the rest.  You use all of that out there in the marketplace into properties.

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