Taking Back Certificate of Title..... Disadvantages?

Discussion in 'Accounting & Tax' started by mike8t1, 2nd May, 2018.

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  1. mike8t1

    mike8t1 Active Member

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    Hey folks,

    I am about to refi a few loans and have the option to shuffle some debt and release a property in full.

    It seems logical to me as i can reduce the active number of loans and relinquish the banks control of one property.

    Are there any disadvantages to this idea or is a scenario where i should proceed?

    My portfolio is positively geared currently.

    Thanks
     
    mike8t1, 2nd May, 2018
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Loans are different to Mortgages. Keep a property Mortgaged can add asset protection benefits.
     
    Terry_w, 2nd May, 2018
    #2
  3. mike8t1

    mike8t1 Active Member

    Joined:
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    Sydney
    Thanks Terry,

    Are you referring to the safety of having the bank hold the title or is there more to it?

    Cheers
     
    mike8t1, 2nd May, 2018
    #3
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Ironic that when many repay a loan the bank cant find the title deed
     
    Paul@PAS, 2nd May, 2018
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    qak likes this.
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Harder to steal the property and a mortgage on title will make someone think twice about suing you.
     
    Terry_w, 2nd May, 2018
    #5
    EN710 and Paul@PAS like this.