Aaron explains when you actually need to cross-securitize properties. In most cases, about 9.9 out of 10, you don't. The main downside: you lose control when you want to sell. Contact him if your situation is different.
Is there really a need to cross securitize your properties? Hey, it's Aaron from Diagnostics and Finance. Previously I mentioned about what cross securitization is, is about sticking our two houses together and borrowing an amount of money of its combined value. And then I mentioned that when you come to get rid of them, you have to break it apart. So is there really a need to? Well, I'd say probably 9.9 times out of 10 there's not really a need unless there's a determined policy from a bank of your choice or the bank that we are mandated to go with. There's not totally always a need to cross securitize the properties. The problem when we cross securitize properties is that we have one market's value against another's and that will change significantly over time. And then you've also got the big reason of why you would sell property. Most people will sell property and try to think of the market and try to think of what's changing. But most of the time when we come to sell something, we have a need. We have a need to buy another house or get a bigger house. We have a need to change related to jobs, lifestyle, employment types, anything like that. We have a need. So when we are crossed together, there's an aspect of losing control. Now, not necessarily a problem in some circumstances, but the majority know the reason you might want to cross securitize as I mentioned before, bank policy items like that, or you have a need not to put a mortgage or a mortgage on or one of your properties or not, or you might have the need to cross to help your son or daughter out related to a family pledge which is a pseudo cross securitization in a small dollar value and a little bit more on that on other videos. So in the main you probably got it. I don't like cross securitization. It if you are in a situation where you've put no deposit down when you've bought a property or you have a home loan that is equal to the value of the investment property and a home loan owner occupied mortgage with the same lender that is significantly less, there is a high chance that you might be crossed together and you need control of your assets back. So give me a shout if this sounds like you.
