- Another loan advice please.Hi,
I am looking for some advice on getting another property investment loan. My wife and I both operate our own businesses and only have 1 tax return each from these newish businesses with a combined income of approx $95,000(08/09). However this year (09-10) the combined total will be approx $170,000We currently own 2 investment properties. A unit in Sydney worth $450,000 (loan $312,000, rent $600/week) and a terrace in inner west Sydney worth $750,000 (loan $512,000, rent $700/week). We live in a very nice rent free deal and have no other loans etc.
I have spoken to our mortgage broker about getting another loan and he said we will have to wait till we put in 09/10 tax returns. I just wanted to know if there is a more immediate way to get a loan? Ideally by refinancing and using some of our existing equity.
Thanks
Don’t worry too much about what your broker says. CBA, NAB and BOQ are three lenders that will conisder MYOB statements or an interim Profit and Loss – the deal will need to be presented well with a good background about your business.
It also depends on the type of business / industry : – I just had a loan approved for a client who has been self employed 7 months. Income verification was from management accounts and invoices. 80% lend with a major 4 bank.
Can you tell us what industy you’re both in and how long you’ve been in the industries?
Yes in addition to the 3 Banker has mentioned i can think of 3 others off the top of my head who would also do the deal and 2 others who would go to 90% lvr.
Not a matter of what you havent got more a matter of what you have.
The fact that you dont have Tax returns may scare some Brokers and lenders however others adopt a more common sense approach.
Richard Taylor | Australia's leading private lender
If you are running a business then you wil need to seriously consider asset protection for the ownership of this property.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yikes! I would consider paying the loans off that you have already got. $962K in a rising interest rate environment is risky business in itself.
Why? The first place is returning 10%, the other 7%. Between them they should be cash flow neutral after all costs, so why not keep them and buy something else and get the growth from all 3?
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