All Topics / Help Needed! / Chan & Naylor trust and now can’t get finance

Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of nnelgnnelg
    Member
    @nnelg
    Join Date: 2011
    Post Count: 2

    Hi Guys
    I need some advice urgently, I went for a review at Chan & Naylor having had properties and a trust set up already. They said my other trust wasnt the best option and they set up a Property Investor Trust for me.

    I have just purchased a property and the ANZ have come back and said they wont be financing anything to do with Chan & Naylor and the trust set up by them. They said there is a tax disupte over someone with one and they will not look at it. They have apparently said that if there was another trust then they would look at that….

    Has anyone else got this problem or had trusts set up and by Chan & Naylor and now finding that they can’t get finance?? I have put in a couple of calls to Chan & Naylor without a call back and really could do with some feedback

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Sorry to say; some trust sounds like the perfect “investors” trust but most of them are either not acceptable by banks and the ATO! due to the fact they have to many restriction and “what if” .

    Sometimes keeping it simple and going with a simple trust that “works” and does what it does is the best solution.

    Having said that; i have never had a bank directly say ” We do not accept Chan’s and Naylor’s trust” in fact i have plenty of chan and aylor get accepted…some were rejected for the same reasons as yours- but the reason for the rejection is the trust type and set up…but not chan and Naylor themselves.

    But here is 2 tip i will give you;

    1. it’s common for a bank staff to have NO idea how the trust really works and sometimes it gets to hard and it’;s eaier for them just to say ” no”- so if anything get a experienced broker involved or ask another bank if your confident your trust is correct.

    2. Speak to Chan and naylor and see what they say — then get a 2nd advice from another experienced accountant ( yes you will mostly have to pay for their service)

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
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    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    By the way is it a Hybrid trust?? Most hybrid are not done correctly.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    As Michael has mentioned on paper it sounds perfect and in some bases too good to be true but as is everything in life "if it sounds too good to be true then it probably is".

    Anz will not alone in touching a PIT prepared by Chan & Naylor and I am suprised their Finance Dept did not tell you that … ah in saying that of course maybe you wouldn't have gone if they had.

    Depending on the rest of the deal it maybe possible to finance it through a couple of lenders but your level of choice has just fallen about 95%.

    Did a C & N Cnstruction loan for a Vic client recently and that was a struggle but we got there in the end.

    Course C & N might offer you a full refund of the $3K + they charged you… on the othre hand they may not.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I am a solicitor with knowledge of trusts and I would like to offer that I have a look at the trust set up for you to see if I can help or make some suggestions.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Nigel KibelNigel Kibel
    Participant
    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    Whats new that was the case 2 years ago

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    We have just launched a new website join our membership today

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    nnelg i would take Terry up on his offer.

    Nigel you are so right managed to get away with it then and seems they are still at it.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of somurphysomurphy
    Member
    @somurphy
    Join Date: 2011
    Post Count: 1

    Hi, I’m Simon and a representative of Chan & Naylor.

    We just wanted to provide some clarification from a broking point of view about the issue of finance and properties held in trusts.

    Each bank will have a policy on whether they accept a security held in a trust for a loan and these tend to change from time to time. Some lenders accept discretionary trusts and unit trusts but not hybrid trusts, some lenders accept all three and some lenders do not accept any.

    Our mortgage broking business regularly lodges loans with the security property held in a hybrid trust to lenders. Often this hybrid trust is the Chan and Naylor Property Investor Trust. We choose to go to the lenders who are familiar with the hybrid trust and have a lending policy that welcomes this structure and find its a non-issue when a lender is approached in the correct way.

    That said there are occasions where hybrid trust loans are accepted by a lender in one state and yet declined by the same lender in another. This may be a result of inconsistencies in how internal credit personnel are interpreting policy. ANZ appears to be a case in point right now, although last year it was accepting these structures. Our suggestion is that some further research may be required to find the right lender for this trust mechanism.

    Just as a side note – if you are borrowing under then Low Docs lending policy then it is unlikely that you will find a lender for a property loan on any type of trust structure at the moment. This is because of ASIC’s current credit policy resulting from new NCCP regulations rather than lender or accountant specific (who may have set up a particular structure before the GFC and the subsequent ASIC regulation of credit providers).

    nnelg – we apologise that your calls have not been returned. If you can send me a private email with your contact details on then I will ensure that someone gets back to you on this matter.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Amazing that a representative of C & N just happens to pop up and post his / her first post when their firm is mentioned.

    Have to disagree Lodoc in a Trust structure is readily available through a wide range of lenders and NCCP has certainly not put a end to this. Whilst the lending requirements by way of required documentation maybe appear slightly higher since the inception of NCCP any Broker worth his salt was undertaking such prudent checks and balances on his client pre-legislation.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of nnelgnnelg
    Member
    @nnelg
    Join Date: 2011
    Post Count: 2

    Thanks for all of the advice and also separate advice I really appreciate the response. We are trying through another lender at present so fingers crossed.

    Yes it is a hybrid trust but I think it is the issue that it is set up by Chan & Naylor AND a hybrid trust, they said they would look at it if I had one set up by another company.

    I now need to get some independent advice about the advice I paid Chan & Naylor for, which I will do after Xmas… Very frustrating……

    Thank you all again

    Profile photo of zenzen
    Participant
    @zen007
    Join Date: 2016
    Post Count: 46

    Hi All,

    I am about to decide on a lump sum from my super ($200k) as will cease work this Friday 6 July 2018!

    I need ideas on my options:

    1. Rollover lump sum to set up a SMSF corporate trustee
    2. Rollover lump sum into and setup Family Trust with a corporate trustee
    3. Rollover lump sum into PIT – Property Investor Trust (Chan&Taylor) and use this to invest in property developments (joint ventures)
    4. Rollover half lump sum into setting up a SMSF and set up a Property Investor Trust
    5. Take half pension and set up SMSF and PIT

    Hear from you soon or if you know anyone. I understand I need to see a financial adviser.

    Thanks

    Zen

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    ‘roll over’ is a vague term. What do you mean by it?

    1. Seek financial advice
    2. Seek legal advice – why do you want to do this and do you know the consequences?
    3. why?
    4. seek legal advice and financial advice
    5. seek legal advice and financial advice and ask yourself ‘why?’

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

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

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