All Topics / Finance / Finance Options For a Co/Trust

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  • Profile photo of bjb007bjb007
    Join Date: 2003
    Post 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.


    Profile photo of MortgagemanMortgageman
    Join Date: 2004
    Post Count: 164

    Hi bjb007,

    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.

    Kind Regards,

    Cameron Perry
    Perry Financial Strategies
    Level 13, 30 Collins St
    Melbourne VIC 3000
    Ph (03) 9662 1999
    Fax (03) 9662 2044

    Profile photo of bjb007bjb007
    Join Date: 2003
    Post 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.


    Profile photo of Richard TaylorRichard Taylor
    Join Date: 2003
    Post 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.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

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

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