Hi Folks
Apologies if this has already been asked, if a trust is set up and a company is set up as the trustee and I become the director of the company, all assets are transfered into my wifes name for protection so effectively I have nothing, how does the trust borrow money with no bricks & mortar as collateral, I can go guarantor for the trust however I have no assets, in this current climate will banks will lend me money with no assets.
My other question is if we are concentrating on positive geared properties that have very little growth and considering the current climate, how do you purchase multiple properties with no equity, where do all the deposits come from?
If someone could please point me in the right direction.
Regards
Mick
Yes banks will lend you, or the trust money as it will have the investment property owned by the trust as security. It will be just like a person buying their first house.
If you are going to be buying property with no growth, then the only way to keep on going is to keep on coming up with deposits from savings. Generally the more properties you buy, the higher the deposit needed.
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
Hi Mick
In your example, your wife will have to grantee the loan (unless you are using a cash deposit and your income is enough to service the debt).
I wrote an article for API mag about borrowing in trusts – see http://www.prosolution.com.au/articles/structure3.pdf
Cheers
Stu
If your properties are positive cashflow and your equity growth is non-existent, your deposits come from the positive cashflow.
TMA
http://www.email4money.info
Essential Links
First Home Buyer WebsiteThanks for all your advice folks.
Regards
Mick
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