Have you thought about keeping those blocks?

Terryw
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Most banks will lend to a newly created company. They cover themselves by getting personal guarrantees from the directors. Infact, some banks will not lend to a company that is trading as it is too risky (trade related debts etc).

Have you had some advice on this? I wouldn’t be buying in a company name unless it is a corporate trustee. Speak to an accountant (a good one).

Terryw
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Bluestone are a non conforming lender mailnly for people with credit problems but can be actually very good with large loans (apprx $1.5mil +). often normal lenders won’t do these high lends at teh same LVR.

Terryw
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What? ANZ in the lead?

I recently found that 2 of those properties that I had loans for with ANZ had a major problem. The titles were not in my name-18 months after being purchased. After many phone calls and complaints etc, I found out that ANZ had not transferred the titles.

Terryw
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I used ANZ 95% IO loans with LMI added on top (5 loans in one year). ANZ are pretty good on serviceability and also offer 100% offset accounts on IO loans.

The problem with ANZ is the mistakes they made. nearly every settlement has problems. And now I have sold 4 of these properties recently and settlement was delayed by ANZ stuff ups.

Terryw
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Junior, No Doc loans are also called Asset Lends.

Terryw
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Hi Calron

There is a catch-The interest rates are high. This is meant to be short term finance only, so once the project is completed you could refinance with a lower rate. It will also depend on the location, anywhere on the east coast may be OK, but not country areas.

It works by getting 70% of the end value which is often enough to get 100% finance. based soley on valuation with no, credit checks, no financials etc (not even an application form).

Terryw
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Tilly and Mensch

Just imagine in Tilly’s example, if the driver of the car had one drink before driving. the Insurance company would be likely to wiggle out of paying and the driver would then probably be sued.

Regina

A tenant ‘may’ be able sue the trustee as the ‘owner’ of the property in some circumstances (say the faulty wiring was illegal repairs?). If a $2 company was trustee this would add more protection as the trustee would have no assets, whereas an individual trustee would. (Not sure if the house would be an accessible asset in this case).

M1in12 and mensch
Changing trustees in some circumstances may trigger a CGT event. I think if there is a substantial change in any of the major beneficiaries the CGT event may be triggered. Usually the trustees are the main beneficiaries. if you change to an different individual trustee you may change the main beneficiaries as a result. Changing to a corporate trustee with the previous trustee as director may not. Better check with a solicitor before you do anything. Paying a couple of hundered dollars now for some good advice may save you tens of thousands later!

Terryw
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Marty

You owuld have to apply for a release of security which costs about $300 usually. The bank will probably require a re-valuation on the remaining security to make sure in comes in at an acceptable LVR.

Terryw
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Sooshie

How do you triple mortgage a property?

I have heard of major frauds happening and banks losing millions but not doing anything because of the possible bad publicity!

Terryw
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