Today’s Blog I’m going to tell a story about some clients that I have helped. A lot of clients do not get the right advice when they walk into a bank. When they do this they sometimes get setup with the wrong structure for their future plans. A recently helped some parents and their daughter to untangle their loans. The parents own 6 properties, 3 of which were jointly owned with the daughter. 2 of these were investment properties and the 3rd was the parents’ home that the daughter partly owned. The parents were also guaranteeing the daughters owner occupied property loan. All of these properties were cross securitised and they reached a point where they were too tangled and moving forward was becoming difficult for both the parents and the daughter.
I have gone through the properties, their values, loans owing, stamp duty involved in selling the properties back to each other so each property is now either owned by the parents or the daughter and they are no longer cross securitised. There are no more guarantees, no more crossed and no more parent / daughter ownerships. Now they can go ahead with their future plans. The daughter is looking to renovate and purchase another investment in the future and the parents are planning for their retirement.
Situations like these required a big effort of problem solving and to be honest I actually really enjoyed the challenge!
Related Tag: Mortgage Broker Lennox Head