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From: Michael Duffy



Hi all readers



I am a 35 year old builder with a young family I own my own property complete with unfinished house its worth at least $600,000.00 as is, we have got an investment farm worth $100,000.00 which we owe $40,000.00. My problem is as a self employed builder my bank only wants to lend money which reflects my end of year income which my accountant always seems to get to about $30,000.00. How do I get around this problem and looking at my equity what should I be looking to borrow.

thanks
Michael
 
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Reply: 1
From: Jas


> From: "Michael Duffy" <jeof@bigpond.com.au>

Hi Michael

> I am a 35 year old builder with a young family I own my own property
> complete with unfinished house its worth at least $600,000.00 as is,
we
> have got an investment farm worth $100,000.00 which we owe $40,000.00.
My
> problem is as a self employed builder my bank only wants to lend money
> which reflects my end of year income which my accountant always seems
to
> get to about $30,000.00. How do I get around this problem and looking
at
> my equity what should I be looking to borrow.


Clever how your accountant can always get you into that lower tax rate
;)

There are a couple of ideas. The first is always to talk to a mortgage
broker.

The second is to get your accountant to whip up a letter showing your
banker how your taxable income is after taking into account all the
non-self employed deductions (cars, home office etc). If necessary get
your accountant to talk to your banker.

Jas

To paraphrase Charles Mackay - By the vile arts of stock-jobbers!
 
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Reply: 1.1
From: Les .



Or talk to Uncle Steve Navra about his cashbonds - GREAT for turning equity into income to support your DSR in the bank's eyes.

Regards,

Les


- "Eschew Obfuscation" - ;^)
 
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Reply: 2
From: Rolf Latham


Another solution is the myiriad of No docs loans some of which are now effecctively only marginally more expensive than a standard loan.

Two typical examples - 6.3 % variable from day one.

or

6.95 for the first 2 years, make your payments on time for 2 years and the lender will reduce the rate to 5.94 %.

Some promoters are marketing these products as "hassle" free loans because the borrower signs a declaration of what they can repay the loan so no mucking around with tax returns.

Ta

Rolf
 
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Reply: 3
From: LUCJAN ROCZNIAK


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Hi Michael

Like Rolf said go speak to a broker and go for a low doc loan ( no proof =of income).
If the valuations come to what you say $700k less $40k loan
= $ 660k in equity then you should be able to get (75%LVR low doc loan =)
which is about $ 495,000 loan. The only diffrence will be the interest =rate which
will be high 6% to low 7% .
This is a lot of money to play with. Lots of deposits for IP's.

Luch.R

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Hi Michael

Like Rolf said go speak to a broker and go for a low =doc loan
( no proof of income).
If the valuations come to what you say $700k less =$40k
loan
= $ 660k in equity then you should be able to get =(75%LVR low
doc loan )
which is about $ 495,000 loan. The only diffrence =will be the
interest rate which
will be high 6% to low 7% .
This is a lot of money to play with. Lots of =deposits for
IP's.

Luch.R

------=_NextPart_000_01CB_01C1DE24.B3093AC0--
 
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Reply: 3.1
From: Mark Pardi


No docs loans are the way to go.

There are some "resident" mortgage experts in this forum that I am sure can help you.

We have a lot of clients that require these loans so you are not "aloan"

good luck
 
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