How to work with an low taxable income?

So long story short, I'm looking at having bought my first property by the end of 2015 however I know banks are hesitant to loan me due to my low taxable income. Thing is, I have an income, it's a very unique situation where I receive monthly "gifts" from overseas (family trust account, of which I am not a trustee/owner), which the tax office have informed me many times, is fine/untaxable.

And now I'm working as a subcontractor, via an ABN, so my actual taxable income is low and varied. Are there any banks who would look at my actual bank account (and see the consistent income) or do they *only* look at my notice of assessments? (Which make me look very poor.)

Any alternatives to getting a first home, where I have a solid income, but a low taxable income?
 
the banks will look at what is going into your account, but will require payslips to prove income. So unfortunately it is only your actual income that will be counted. I do have to wonder though if you have some sort of documentation showing proof of your income from overseas will continue to come in on a long term basis if they might take that into account? I doubt it, but worth asking.

I think the only way around is to go and get yourself a higher paying job, or do well at saving and start by paying cash?

Do strike a good relationship with your bank manager and lending officer. That is always a valuable relationship. There are still situations where you can find work arounds with them if you have a good relationship with them. Also might be worth finding a good broker in case you find a cluey one?

One final way, I know it is done in USA, not sure if it is done here, but getting private financing. So an individual who has cash, who is willing to lend you the money. That is always a possibility.
 
The trust distributions - is that from a discretionary trust? How do you know they won't dry up and stop tomorrow? How will the bank be assured?

I would think your best option would be to try and increase what you're getting via your ABN to improve your serviceability, and try to save up enough to avoid an LMI provider looking at it.
 
So long story short, I'm looking at having bought my first property by the end of 2015 however I know banks are hesitant to loan me due to my low taxable income. Thing is, I have an income, it's a very unique situation where I receive monthly "gifts" from overseas (family trust account, of which I am not a trustee/owner), which the tax office have informed me many times, is fine/untaxable.

And now I'm working as a subcontractor, via an ABN, so my actual taxable income is low and varied. Are there any banks who would look at my actual bank account (and see the consistent income) or do they *only* look at my notice of assessments? (Which make me look very poor.)

Any alternatives to getting a first home, where I have a solid income, but a low taxable income?

Gifts don't count as income for servicing.

If the gifts are in inverted commas they are probably taxable too!


Contractors generally need 2 years tax returns to demonstrate servicing, but, if you were working in the same industry before switching over to contracting it may be slightly different.
 
If you're operating via an ABN, then you're self employed. Lenders will want to see 2 years of tax returns to determine your affordability.

If you want to improve your affordability, pay more tax.
 
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