Hi there
I hve had just about every financial institution knock me back on a lo doc in a hybrid unit trust. They have no problem with a unit trust or a discretionary trust – they just have a problem with the hybrid unit trust. Can anyone tell me why? Does anyone know of anyone who will finance on a deal like this?
Cheers
K
The ATO is targeting Hybrid Trusts.
Have a look at this post and the link to the ATO:
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4324208
Also my guess would be that with credit squeezing being flavour of the month (year), and due to the current conjecture and ATO's focus, the lenders are not keen to deal with such structures in anything but (perhaps) a full doc situation.
Have you secured finance before thru HDT?
I'm not sure who might finance such a strutcure at lo doc, perhaps some of the MB's here can assist.
Linar
Many lenders do not take HDT applications even on a full doc basis simply because they dont understand the mechanics however in saying this there are few lender who have no problems with structure both lodoc / full doc.
Richard Taylor | Australia's leading private lender
The problem will probably be that you have a company as trustee. That means the legal owner will go on the title ie company, but the loan needs to be in the name of the unit holder. That is the main problem that banks have = loan in a different name to the title.
St George used to be ok with this – but I haven't run across a HDT for a while now so not sure if they still do.
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
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