Hi Guys,
I’ve just read folder 2 talking about structures.
I am a little bit lost at Steve saying you can use the equity twice to borrow.
Can anyone explain or shed some light?
Maybe I made that up.
Please helpRegards
Frankwhat is folder 2?
“Money is a currency, like electricity and it requires momentum to make it Effective”
Online Positive Cashflow and Renovating CalculatorsTrusts do not effect borrowing ability at all.
When you set up a trust, the trustee, or the director of the company that is trustee actually borrows or guarrantees the loan. So it will all come down to the credit worthiness of this person.
Once the trust has beens established for a while the assets and incomes will help, but you would have had this anyway if buying in your own name.
Trusts add flexibility though. If you are director of the trustee, and you get a bad credit rating (eg due to credit card default etc), you can resign as director and someone else can go in your place. This person can then guarrantee the loans.
So I don’t know what Steve would be referring to here.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
