We are in a bit of a dilemma. We are self employed and about to put in our tax returns for the past 3 years.The way
the accountant has put it we can get away with declaring a small amount of income as we have huge costs, ie 40K for
both of us per year which minimises the tax bill.
On the other hand, we want to get a commercial loan for 700K to build a triplex and sell within 12 months. We can get a
low doc commercial loan but a serviceable income is around 150K for that type of loan. We could cut out some of our
business purchases and declare a higher income however we will have a massive tax bill. Yet, we shouldnt have any
issues with borrowing. On 40K per year we will be unable to borrow anything.
Any ideas or advice? ThanksThis is one of the issues with lodoc lending it is aimed at clients who do not have the relevant paperwork to evidence their income and not for clients to write down any income to obtain the loan and then lodge tax returns showing a lower income to reduce tax liabilities.
You could always look at a nodoc loan admitedly the interest rate will be a lot higher or a commercial lodoc loan where your accountant confirms the ability to make repayments.
Richard Taylor | Australia's leading private lender
You can't have you cake and eat it too – unless you go No Doc – which are few and far between for commercial.
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
Providing you have a Sell it All exit strategy, the servicibility is not even considered for a true commercial facility. Both previous replies have completely overlooked this.
If you have a suitable fesibility and site with DA, your deal will be considered with interest capitalisation in advance, and a 'Sell All' exit strategy.
Servicing is for Residential loans, or land banking or long term holding facilities.Let me know if you would like further information. Drop me an email or call.
Tim
Not overlooked that fact at all. Just i have a little more information than is posted.
Richard Taylor | Australia's leading private lender
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