Forums / Getting Technical / Finance / Questions re +ve props & business

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  • Profile photo of EcclesEccles
    Member
    @eccles
    Join Date: 2003
    Post Count: 69

    We are wanting to purchase a +ve geared property with family (all legalised and above board) the trouble is we are also looking at getting a business loan. Will the loan for the property (although In 4 names) be looked down upon in regards to the business loan?

    Bronwen

    If the good die young then I will live forever

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    When borrowing, all other debts must be taken into account by the lender. SO it will affect your application for a business loan, but being positively geared would mean that it may not be too bad as they also take into account all income.

    (But most lenders take, say, 80% of rent, whereas the load the amount of interest you are paying. ie they factor in higher outgoings while decreasing your incomings!).

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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