- bjb007Participant@bjb007Join Date: 2003Post Count: 69
Want to pick the brains of some of you intelligent people here.
I am in the throws of buying an IP via Co/Unit Trust structure with two other parties. We have applied for finance BUT one party doesn't have their tax return done for the end of '06.
A couple of questions:
A. Will any lender accept a draft tax return to approve a loan?
B. If we can't get the loan because one person doesn't have the return to produce for finance what other ways could we do this to get it across the line under the Co/Unit Trust structure in place.
The approval we are seeking was for each party to put up their share of 20% plus costs and we were borrowing 80% again the investment property.
None of us wanted to put our properties up as collateral for the deal.
I would LOVE to get some ideas from you people – this is my first investment and I fear I may be overlooking other obvious options available.
ThanksMortgagemanParticipant@mortgagemanJoin Date: 2004Post Count: 164
Is the person self employed? If they are PAYG then a couple of payslips would usually suffice. If not, as long as the drafts are accountant prepared then they should be ok, particularly if you are putting in 20% deposit as mentioned. You have plenty of options if you do not want to show financials. I suggest you speak to a good broker about your situation.
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.combjb007Participant@bjb007Join Date: 2003Post Count: 69
They are self employed. We didn't want to go for a low doc loan because the fees, interest etc (I believe) would be higher.
If you could share say just 2 of the most common alternatives I would be really grateful. I feel I have a lot to learn and I also suspect I haven't picked the most knowledgeable broker.
Thanks.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Have to say I disagree about the fees and interest rate being higher on lodoc although of course this may not be required.
As Cameron stated think it is a matter of switching brokers.