All Topics / Finance / Improving serviceability with a trust

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of bradmonzbradmonz
    Participant
    @bradmonz
    Join Date: 2010
    Post Count: 15

    G'day everyone.  I heard Dymphna Boholt suggest at one of her seminars that a bank may not assess your existing liabilities when financing through a trust, only your income.  The reason I'm seeking clarification of this is that we currently have no useful equity in our IP (thank you GFC), have a baby at home and really only 1.5 incomes but desperately want to buy more IPs while the buying is so good and positively geared properties are plenitful.  We see this market as the opportunity of a lifetime for securing our family's future wealth.  Any advice would be appreciated, especially from Terryw and Qlds007.

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

    No true.

    You would need equity or cash anyway.

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

    As Terry said in regards to equity / cash for deposit.

    In fact post GFC you need more than before as > 90% lending is very tough.

    Unless you have a good UMI i would suggest you need 16-18% to cover a 10 deposit plus acqusition costs.

    In regards to the comment made by Dymphna i think you have may have misheard her as all liabilities need to be disclosed irrespective of the entity in which you hold the property.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.