financing at an advanced age with few resources

Viewing 4 posts - 1 through 4 (of 4 total)

heathersjasia
Member
@heathersjasia
Join Date: 2005
Post Count: 1
April 10, 2005 - 1:06 am
I am yet to get my feet wet but really want to get started with positive property investing. How do those in the late fifties get finance on 25 -30 year terms. Can it be done setting up a company with younger people involved? shorter terms it seems to me are going to mean bigger payments and that would wipe out the positive cash flow.
H M S-Johnson
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
April 10, 2005 - 9:32 am
You should be able to get standard loans with most banks. There is only one I know of that discriminates on age.
I once heard a banker just they just did a 30 year loan to an 88 year old woman.
However, to get a loan, you must have deposit and an income to support the repayments – inless you go for an asset loan or no doc loan.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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maximus
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@maximus
Join Date: 2003
Post Count: 189
April 10, 2005 - 12:43 pm
Originally posted by Terryw:
inless you go for an asset loan or no doc loan.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]
Hi Terry..
Dont know if this thread is in the right section but any way……could you please explain how an asset loan works. Is it similar to accessing your equity through a line of credit? What sort of interest is charged on this type of loan?
Thanx
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 11, 2005 - 10:54 am
Hi
An asset loan is where the lender (mainly) looks at the asset and not the person. Often no questions are asked about about employment or assets etc. There are no serviceability issues at all. These are sometimes also referred to as No Docs.
Many people prefer these to Low Docs because with a low doc an income needs to be listed and serviceability must be passed.
The downside with asset loans is the LVR. usually 65% LVR (with rates around 7.55% reducing to 6.80%), though there are some at 70-75% and one I kno of at 85% – but this is short term and has high rates – around 10%.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au