All Topics / Finance / Is it true you can leverage your income over and over by getting loans as a guarantor of a company/trust?

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  • Profile photo of VictoriaCVictoriaC
    Member
    @victoriac
    Join Date: 2012
    Post Count: 18
    March 1, 2012 - 4:03 am

    Has anyone done this? How does it work? Pro's/cons??

    Is this even legal and will many brokers do it?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    March 1, 2012 - 9:36 am

    No, it's not true.

    Your borrowing capacity will be the same irrespective of whether the purchase is under personal names or a trust.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 1, 2012 - 9:44 am

    In the main Jamie is correct however once the Trust / Company has been running for 2 Year and if you are in the business of buying property then rather than taking a given percentage of the rent lenders will take 100% of the net profit.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 3 posts - 1 through 3 (of 3 total)

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