Hello everyone,
I?ve been a selective reader of the forum for the most part of the past two years and would like to start by saying ?thank you!? to all of those who have been very generous in sharing their knowledge. I have relied mostly on the ?search? function and never really had to register as a member as most of the questions that I had were already covered in various topics.
I am very new to the investment game and lately, I am trying to figure at what stage/loan amount do I need to start diversifying my borrowings in order to spread my risk?
We paid off our PPOR in 2013 and after what seemed like an eternity of agonizing over ?should we, shouldn?t we?; finally took a plunge and purchased our first IP in May last year. I am keen to pick up another IP around the 500k mark and remember reading amongst the threads that it is better to diversify borrowings rather than sticking with one bank.
The current IP was purchased for $465k ? with a total loan size of 500k. Of this, $128k was pegged to the PPOR. We also applied for a 200k loan (untouched) that we intended to use as down payment if we find another PPOR that we like.
I am trying to find out what the major limitations are if I continue to stick with the one bank and how this would impact on my future financing?
I am currently with CBA and have found having multiple offset accounts to be a good feature plus they seem easy with IO loans with IP. We were previously on 4.84% and got a slight reduction (to 4.74%) recently by completing a desktop valuation on the IP and taking on an additional 20k loan ? pretty much sorted out in 1 phone call. I am not that familiar with the other banks so I am wondering if this ?convenience? is fairly standard.
I?ve been a selective reader of the forum for the most part of the past two years and would like to start by saying ?thank you!? to all of those who have been very generous in sharing their knowledge. I have relied mostly on the ?search? function and never really had to register as a member as most of the questions that I had were already covered in various topics.
I am very new to the investment game and lately, I am trying to figure at what stage/loan amount do I need to start diversifying my borrowings in order to spread my risk?
We paid off our PPOR in 2013 and after what seemed like an eternity of agonizing over ?should we, shouldn?t we?; finally took a plunge and purchased our first IP in May last year. I am keen to pick up another IP around the 500k mark and remember reading amongst the threads that it is better to diversify borrowings rather than sticking with one bank.
The current IP was purchased for $465k ? with a total loan size of 500k. Of this, $128k was pegged to the PPOR. We also applied for a 200k loan (untouched) that we intended to use as down payment if we find another PPOR that we like.
I am trying to find out what the major limitations are if I continue to stick with the one bank and how this would impact on my future financing?
I am currently with CBA and have found having multiple offset accounts to be a good feature plus they seem easy with IO loans with IP. We were previously on 4.84% and got a slight reduction (to 4.74%) recently by completing a desktop valuation on the IP and taking on an additional 20k loan ? pretty much sorted out in 1 phone call. I am not that familiar with the other banks so I am wondering if this ?convenience? is fairly standard.