Hey guys,
Reading Steves book 0-260+ in 7yrs at the moment and in it he talks briefly about using the trust as the borrower and then giving a personal guarantee.
For the brokers out there, does this guaranteed amount then not count towards your borrowing max? Steve talks about how this helps to avoid hitting your ceiling as a personal borrower but not sure exactly how. Will be asking my acc some questions but thought Id get your experience also.
Thanks
Paddyomall
Just found this from Richard in another thread.
"Just note that setting up multiple Trusts will not increase your capacity to borrow."
Any ideas then on what Steve is talking about in the book, will have to have another read when I get home. As I said it was eluded to not put forward in detail.
Possibly the suggestion is that lenders weren't interested in knowing about guarantees. This is much less likely to be the situation now
As crj has mentioned in the good old days (pre 2008) many lenders did not require documentary evidence of a when a guarantee was given however this is certainly not the case now.
Richard Taylor | Australia's leading private lender
Well thats disapointing!
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