A few questions

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TamLuu
Member
@tamluu
Join Date: 2003
Post Count: 5
October 2, 2003 - 12:56 am
Just a few questions…
1/ What’s a low doc loan ?
2/ What are the differences / pros n cons between having a individual trust and a company trust ? if that makes sense…
3/ What are your thoughts on speculations of an increase in interest rates of upto 10% over the next 4 to 5 yrs?
regards
comdom
Participant
@comdom
Join Date: 2003
Post Count: 92
October 2, 2003 - 1:03 am
I cant answer all your question but one bank had 6.19% fixed for 5 years one month ago and it is now 6.69%. Teusday next week will determine where variable interest rates might be going when RBA meets.
My solictor advised to get a individul trust as i have 3 IP’s and no buisness.
Hope this helps
Dom[]
Devo
Member
@devo
Join Date: 2003
Post Count: 28
October 2, 2003 - 1:45 am
A low doc loan is where you produce very little in the way of documentation to valid your salary/wages etc. This kind of loan is applicable to those who may work for themselves etc who find it very difficult to demonstrate to a lender their earnings as they are self employed. These kind of loans normally a attract a slightly bigger interest rate as it’s little more riskier lending to low doc applicants.
Re: Interest rates – there’s fair bit going on at the moment which is preventing the bubble from bursting. Just when you think rates could rise due to low unemployment, the AUD starts performing welll against the greenback making it difficult for our exports. Mo observations are that interest rates will hover where they are now for a little while say, 12months, then we’ll start to experience a correct which will see a tipping of the scales the other way. Make sure you risk manage by doing your sums so that they embrace worse case sceniaros. We won’t see interest rates sky rocket like they did in the early 90s because the foreign bank invasion has been culled leaving only the real players. No more ambitious lending as seen previously.
Re: Trusts – currently investigating it myself. No advice to impart here at this stage.
Cheers
Steve
quote:
Just a few questions…
1/ What’s a low doc loan ?
2/ What are the differences / pros n cons between having a individual trust and a company trust ? if that makes sense…
3/ What are your thoughts on speculations of an increase in interest rates of upto 10% over the next 4 to 5 yrs?
regards