Hi All
I am currently refinancing my PPOR and my only IP to basically give me 100K to go into my first business.
1. Can anyone give me any tips on how I can more wisely use the money to perhaps pick up another IP as part of this deal and still have the money to get the business? I have another 14K I could have interest free for approx 2 months if this makes things more rosy. The 14K has to be given back by the end of the 2 months.
2. Once I am in the business, how will I go getting lenders to give me more money for more IP’s since I will no longer have a steady wage and/or will have only just started business so won’t have any solid figures to show them. Will banks frown on me for a while until I have been in the business for say 12 months and have some consistent figures?
As always, your expert help is very much appreciated.
[^]Dan
Dan,
love to try to help but will need more detail.
Either post it here or email if too private!
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon
on point 1.
I have a PPOR which I am refinancing to gain access to approx 30K in equity.
I also have an IP which I am refinancing to free up approx 70K of equity.
The 100K total equity is going to be for purchasing my first business. I was just hoping to see if anyone had any ideas on how I could more wisely my situation to maybe pickup another IP as part of the deal.
It just seems to me that 100K is a lot to have and not come out of it with another IP. I guess I just want my cake and eat it too![:p]I have 14K on loan to me interest free for two months. I must hand it back in two months. I was looking for ideas on how I could smartly use the 14K plus the 100K to get another IP (even if a cheap one) as well as still being able to purchase my business.
on point 2, my concern is the banks will question my servicability of any future IP’s until I have been in the business for at least 12 months. I don’t want to wait that long before I buy again.
Hope you have some ideas for me. I just want to make sure I am getting the most out of the money I currently have freed up. So just looking for advise more than anything.
thanks heaps[^]
Dan
Hi
you could use part of the $100,000 as deposits for further property. Get 95% LVR loans if possible (esp while you are still working) as this would leave you with some cash. That is the only way to get both property and business.
Once you stop you job and start a business it will be hard to get a loan. banks want to see 2 years history, and a good income (of course!). Even with low docs, the banks will want to see you holding an ABN for 2 years before they will lend. There are however, some lenders which may not have this requirement.
Terryw
Discover Home Loans
North Sydney
[email protected]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
Traditionally banks have frowned on self employed, because as I was told, you are unemployed to them.
These days there are brokers who will lend for business people who have limited tax or paper info
Establishing yourself is never an easy process.
Elves
Hi there,
we started a business 5 years ago and in the first year one of our clients went into receivership and therefore we made a loss. We approached various banks to obtain a loan and we were rejected.
Finally after exhausing all avenues we managed to get a line of credit using our house as equity (low doc loan) we then invested money in the business as well as purchasing IPs.
A good morgage broker should be able to assist you in exploring all avenues, perhaps a low doc loan ….Sometimes the situation looks completely hopeless just dont give up and eventually it will work out.
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