Rock and a hard place?

[Builda]

Hi all, wifey and I are having a dilemma and are a little unsure and were hoping the forum could steer us in the right direction. (Before we waste our time)

I have an IP which currently rents for $330p/w. Dollars owed are around 180k, property worth approx 245k. I am self employed. We have a few business debts and vehicles etc for our construction business, we are generally pretty tight with our dollars, ie if we borrow money we make sure we can pay it back and be at the minimum 3-12 months in advance on most of our payments/liabilities. I am concerned that the business vehicle loans are seen as personal debt? I am not sure where I stand on it as I obtained a chattel mortgage on both vehicles.

Wifey owns house which we live in now, dollars owed are around 170k, potential rent is $300 p/w. Property worth 230k. Wife recently left job to work in my construction business.

We want to move out of the area we live in and really don't want to get rid of either of our houses. We want to buy a block, build on it, then that will be a PPOR. We will keep the 2 IP's for our super/kids etc. they are geared well and virtually pay for themselves.

I am assuming because we minimise our taxation liabilities through legitimate deductions that it is going to be problematic obtaining finance, however, I thunk we the right broker there is no reason why something cannot be tweaked to suit our finance package (whichever lender it will be) I never ever, ever borrow money without being able to repay it.

A deposit is not a problem, just not sure where I stand......help!

 

[Rolf Latham]

I am assuming because we minimise our taxation liabilities through legitimate deductions that it is going to be problematic obtaining finance, however, I thunk we the right broker there is no reason why something cannot be tweaked to suit our finance package (whichever lender it will be) I never ever, ever borrow money without being able to repay it.

A deposit is not a problem, just not sure where I stand......help!

not an easy answer, one lender may say yes, another may say no


the challenge with legit deductions is that with some rare exceptions ( depreciation being one, and interest on business borrowings beng another) they are seen as actual expenses............ so your real life income is seen as what the tax rtns say...........

ta
rolf

 

[jonmardell]

Hi all, wifey and I are having a dilemma and are a little unsure and were hoping the forum could steer us in the right direction. (Before we waste our time)

I have an IP which currently rents for $330p/w. Dollars owed are around 180k, property worth approx 245k. I am self employed. We have a few business debts and vehicles etc for our construction business, we are generally pretty tight with our dollars, ie if we borrow money we make sure we can pay it back and be at the minimum 3-12 months in advance on most of our payments/liabilities. I am concerned that the business vehicle loans are seen as personal debt? I am not sure where I stand on it as I obtained a chattel mortgage on both vehicles.

Wifey owns house which we live in now, dollars owed are around 170k, potential rent is $300 p/w. Property worth 230k. Wife recently left job to work in my construction business.

We want to move out of the area we live in and really don't want to get rid of either of our houses. We want to buy a block, build on it, then that will be a PPOR. We will keep the 2 IP's for our super/kids etc. they are geared well and virtually pay for themselves.

I am assuming because we minimise our taxation liabilities through legitimate deductions that it is going to be problematic obtaining finance, however, I thunk we the right broker there is no reason why something cannot be tweaked to suit our finance package (whichever lender it will be) I never ever, ever borrow money without being able to repay it.

A deposit is not a problem, just not sure where I stand......help!

As far as the car loans in the business these will not be treated as personal as the P&L will already include these. As far as servicing goes cant really comment as would need to look at the tax returns and P& L's.

 

[tobe]

A low doc loan might be appropriate, however they are getting harder to come by. You need to manage the risks that they are no longer available, or much more expensive over the coming years.