The Dangers of Cross-Collateralization: The "Invisible Handcuffs" of Property Investing
The Dangers of Cross-Collateralization: Why Investors Should Avoid It The Dangers of Cross-Collateralization: The "Invisible Handcuffs" of Property Investing Labels: Investment Risks, Loan Structuring, Asset Protection, Mortgage Tips As you grow your property portfolio in Australia, lenders will often try to make things "simple" for you by suggesting you use your existing property as security for your next one. This is known as **Cross-Collateralization**. While it sounds convenient, it is one of the most dangerous structural traps for investors. In the industry, we call it the "invisible handcuffs" because ...