Loan in company loan

Hi

Having sold 3 of the 4 of our properties recently we are looking at building again.

However this time we are going to be purchasing under a company name which has yet to be registered.

What sort of LVR would we be looking at.

Is there anything else that will effect an application.


*Meant loan in company name*
 
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I would assume 20% deposit is required as you would be going in as lo-doc. You will probably need to sign a guarantee in your name as part of the loan as well.
 
Why would it need to be lodoc?

If the Company is merely used for buying and holding IP's and the Directors have external employment with income sufficient to service the new and existing loans then 90% or even 95% is doable.
 
Why would it need to be lodoc?

If the Company is merely used for buying and holding IP's and the Directors have external employment with income sufficient to service the new and existing loans then 90% or even 95% is doable.

I would assume because the property title will be in the company's name, that the loan would be lo-doc if they don't have 2 years of tax returns etc. You know better than I do, but that was certainly the case when I first went for loans, but then I'm self-employed so it's a bit different I guess
 
Why company? A company doesn't get the 50% CGT concession.

I did this for 2 x IP purchases because the tax benefits are fabulous and suit me right now. The company will have to pay 30% tax when it eventually sells. If I need to take more $$ out of my company in wages to service the debt in my own name I would have to pay 38% tax.
 
Hi Red

No even being self employed as long as your other business income could support the fact that you are buying the property in a Company name would not immediately mean lodoc.

Of course some Bankers and Brokers may have suggested that route as it an easier option but more expensive for you in the whole.
 
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