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Hi guys,
My thoughts on the Trust issue is, being literally in discussions with some banks on finance, they look straight through empty trust structures to the Guarantors. This situation has changed quite a bit since the GFC and may have been more lenient when Steve wrote the book.
I think the only way to avoid this may be looking at more low doc loans, and paying a higher premium. Perhaps one of the brokers about the forum could shed light on this.
It really depends on your bank. If you have a good relationship, have provided all the stuff they'll want to make the assessment, they should be able to do so. But if it's really complicated, high LVRs requiring valuation etc.. you could struggle with 3 days.
Thanks for the advice guys.
My mother always said Location, location location… oh and the other one is, buy the worst house, in the best street.
PPOR = Principal place of Residence, its primarily a tax related term which will decide whether or not you pay capital gains tax (CGT) – another acronym, when you sell the property… I am not a tax adviser, but in general you don't pay CGT when you sell your PPOR.
LVR = Loan to Value Ratio its basically your loan amount divided by the property value, you always want it to be less than 80% or you pay lenders mortgage insurance (LMI) – look more acronyms!
LMI = Lenders mortgage insurance, this covers your lender in the event that you don't meet your repayments and default on your loan. absolutely ZERO value to you or your family, avoid if possible.
