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

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  • Profile photo of bjb007bjb007
    Participant
    @bjb007
    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.

    Thanks

    Profile photo of MortgagemanMortgageman
    Participant
    @mortgageman
    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
    Director
    Perry Financial Strategies
    Level 13, 30 Collins St
    Melbourne VIC 3000
    Ph (03) 9662 1999
    Fax (03) 9662 2044
    http://www.perryfinance.com

    Profile photo of bjb007bjb007
    Participant
    @bjb007
    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.

    Thanks.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    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
    http://www.mortgagecapitalaustralia.com.au
    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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