I Have just been given the opportunity to take the challenge of full time real estate investing (just been downsized) and have only minimal savings .
So with wanting to get our strategy of : Buy-reno-valuation-rent +vely – use gained equity and go again , rolling along nicely I have this predicament .
Where is the best area to source a “business loan” for the purpose of renovation monies and start up costs to lower mortgage insurance and to supplement income whilst concentrating on the first property ?
My main troubles lie with getting the money at a low interest rate and or having the interest payable per 6-12 month period … so any outside the box thinkers and people that have done simaler things , any advice would be muchly appreciated[biggrin].
Nathan.I think you will have a hard time finding a business type loan. You can get a investment loan based on the security (rather than the buisness idea), but you will need to prove serviceability – which will be hard if not working.
Probably you will have to settle on some sort of No Doc loan, with a deposit of 20-30% needed.
Get an ABN now if you do not already have one.
Terryw
Discover Home Loans
Parramatta
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Thank you for your reply , why the ABN ? for what purpose ?
[blink]Most low doc loans require the applicant to be self employed for a period of 2 years or more. Evidence of this is the registration of an ABN. So the sooner you get one hte better!
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
Cheers tez
Tanya
Also make sure that you get the ABN in the entity in which you intend to trade.
There is no point in registering an ABN in your own personal name if you buy your first property in a Company or Trust name that has no ABN.
Also bear in mind that many lodoc lenders will not consider Company or Trust applications so you might need to shop around.
Easiest thing to do is to build in the monthly interest into the loan so that you are not required to come up with it each month. Whilst it may sound attractive to claim that the property is a PPOR for CGT / Stamp Duty point of view but again bear in mind many lodoc lenders will not offer lodoc / nodoc loans on anything but investment property purchases.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
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Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
….or just get another job until your savings are not “minimal”….
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