Hi Folks,
Getting very ready to make first plunge. Have read, talked, procrastinated etc for 2 years since discovering IP mag during holidays in ’04. However, am in the 3rd year of first mortgage, and first year of business. I wondered where I may be positioned fianancially for loan services, given there seems to be some brokers here; thought I’d ask.
Basic stats:
Mort – split loan, my part $160K – down to $149,000. Partners loan $80K, down to $12,000.
Est. House value – $320,000 (all surrounding selling for at least $350,000 and are smaller blocks and house sizes – but just to be sure put lower value on).
Income in first year business – $100k+
Cash – minimally $15,000 availablePartner is OK with me using equity in house, although most if it isn’t mine!! However, I ideally would like to get first investment loan independent of using partner’s equity. Do I have the position to get investment loan on own yet, or should I pay down my own mortgage more?
I realise any advice should be checked by my own accountant, but it always useful to get other perspectives.
cheers to all
Grevs [shades2]
Hi Grevs
If you have been self employed for less than 1 year of business, you will find it difficult to get a standard loan. Most lenders will want to see 2 years financials.
There are other options such as No Doc, but these are limited to 80% of the value of the property. So you would have to come up wtih 20% deposit and costs.
You could possibly get the deposit from the existing property, but your partner would have to agree to this. Whether qualify for a standard loan on this may depend on your partners circumstances as well as yours.
Terryw
Discover Home Loans
Parramatta
[email protected]
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Grevs
As Terry points out with less than 2 years Tax returns then you will struggle to get a standard loan without using the equity in your current property, your partners income and consent or a combination of both.
Lodoc / Nodoc loans are available with lodoc available to 90% LVR on Invt but at a higher interest rate.
I think you should consider maybe raising the 20% of the IP purchase price plus costs by way of a separate loan secured against the PPOR and then a Nodoc / Lodoc loan secured against the IP presumably in your name only.
Also i hope that $15,000 cash is not just sitting in a a Bank A/c ?
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
The answer here is: You should be able to. EASY as that.
Now having said that don’t wander into your local branch of The CBA or Westpac they may get a touch edgy, but it can be done.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Thanks for confirming what Terry and I had posted it is very re-assuring.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thank you for all your responses. I had a bit of a ‘gap’ in being able to get back online – life can throw curve balls sometimes!! Also thank you for those who emailed me directly.
As it turns out, I’ve secured a place in the results program – I’m thinking this may assist me greatly in understanding my position and to get going.
cheers
Grevs
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