The Property Couch TPC Gold | Can I Use One Property to Fund Two More?
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Jun 17, 2025 Curious about using equity in one property to fund two others? Discover the nuances of loan structures and how they can either bolster or hinder your investing strategy. Learn why separating loans might be the key to financial flexibility. This insightful discussion clears up common misconceptions about cross-securitization, making it easier to navigate the property market.
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Use Equity Without Cross-Securitising
- You can use equity from one property as a deposit for multiple investment properties without cross-securitising.
- Structuring loans as standalones with splits gives more control and visibility over your investments.
Avoid Cross-Collateralisation Pitfalls
- Combining all loans into cross-collateralisation is easier for banks but limits your flexibility.
- Poor loan structure can reduce future borrowing power and increase costs like LMI.
Lower LVR Boosts Borrowing Power
- Keeping your loan-to-value ratio (LVR) low can lead to more relaxed servicing calculations by lenders.
- This can increase borrowing power and put more money in your pocket during the accumulation phase.