Hi All,
I was told that some low doc lenders require that one has had an ABN for at least 2 years. Is that true?
Applying for an ABN online is easy. I'm not self-employed (yet) so are there any problems with me just getting (and keeping) one right now so it is "ready" when I need it? What about GST?
Cheers,
Emil
Hi Emil
Yes many lodoc lenders do require you to be self employed and hold an ABN for 2 years + (and if you intend to declare more than 50K PA will require you to be registered for GST) but in saying that many do not and some allow PAYG lodoc.Richard Taylor | Australia's leading private lender
Thanks Richard
.I'm now PAYG but at some point I might become self employed (I hope to be able to replace my income with income from wraps/lease options).
So, if I just applied for one today, would that have any (negative) ramifications for me? I just want an earlier (ABN) start.
Cheers,
EmilNo Emil
You would be able to go lodoc when you are either PAYG or have an ABN for 1 day.
The only difference is the LVR available to you. PAYG Lodoc you can go to 80% LVR whilst there are few lenders that will accept a short term ABN (<2 Years).Richard Taylor | Australia's leading private lender
Thanks Richard, helpful as always
Ah, I seem to be getting it. I still do not understand why some lenders insist on ABN though. I mean it's just a number, you can just get it and not do anything with it for years right?
And another one: do I NEED an ABN if I just "live off wraps"?
Cheers,
EmilEmil
Yes exactly so many lenders put an emphasis on an ABN however as you say you can get one in 24 hours.
In saying this if you intend to start wrapping remember that most lodoc loans are postcode restricted and as mentioned the number of lenders fall if you have your ABN for less than 2 years. You might be better to stay in a PAYG position for the first couple and get a 80% LVR.
If you inted to run a wrapping business then YES you will require a ABN.
Richard Taylor | Australia's leading private lender
Cool, thanks Richard.
Would I impose if I asked you to have a look at the new threads about wraps which I posted this morning in the "Creative Investing" section?Cheers,
Emil
I think the original idea behind Low Doc loans was that these are for business people who have not had time or inclination to get their tax done. All businesses need an ABN, so this is a good measure of how long a person has been in business.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think the original idea behind Low Doc loans was that these are for business people who have not had time or inclination to get their tax done. All businesses need an ABN, so this is a good measure of how long a person has been in business.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
