All Topics / Finance / 3rd investment property loan advice

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of SimonJonesSimonJones
    Member
    @simonjones
    Join Date: 2010
    Post Count: 1
    Another loan advice please.

    Hi,
    I am looking for some advice on getting another property investment loan. My wife and I both operate our own businesses and only have 1 tax return each from these newish businesses with a combined income of approx $95,000(08/09). However this year (09-10) the combined total will be approx $170,000

    We currently own 2 investment properties. A unit in Sydney worth $450,000 (loan $312,000, rent $600/week) and a terrace in inner west Sydney worth $750,000 (loan $512,000, rent $700/week). We live in a very nice rent free deal and have no other loans etc.

    I have spoken to our mortgage broker about getting another loan and he said we will have to wait till we put in 09/10 tax returns. I just wanted to know if there is a more immediate way to get a loan? Ideally by refinancing and using some of our existing equity.

    Thanks

    Profile photo of BankerBanker
    Participant
    @banker
    Join Date: 2010
    Post Count: 371

    Don’t worry too much about what your broker says. CBA, NAB and BOQ are three lenders that will conisder MYOB statements or an interim Profit and Loss – the deal will need to be presented well with a good background about your business.

    It also depends on the type of business / industry : – I just had a loan approved for a client who has been self employed 7 months. Income verification was from management accounts and invoices. 80% lend with a major 4 bank.

    Can you tell us what industy you’re both in and how long you’ve been in the industries?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes in addition to the 3 Banker has mentioned i can think of 3 others off the top of my head who would also do the deal and 2 others who would go to 90% lvr.

    Not a matter of what you havent got more a matter of what you have.

    The fact that you dont have Tax returns may scare some Brokers and lenders however others adopt a more common sense approach.

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    If you are running a business then you wil need to seriously consider asset protection for the ownership of this property.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of nutanuta
    Member
    @nuta
    Join Date: 2009
    Post Count: 11

    Yikes! I would consider paying the loans off that you have already got. $962K in a rising interest rate environment is risky business in itself.

    Profile photo of reddahaydnreddahaydn
    Member
    @reddahaydn
    Join Date: 2009
    Post Count: 28

    Why? The first place is returning 10%, the other 7%. Between them they should be cash flow neutral after all costs, so why not keep them and buy something else and get the growth from all 3?

Viewing 6 posts - 1 through 6 (of 6 total)

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