2 years - 5 properties, portfolio worth 3.1M

They are all they are cracked up to be - but some people may be cracking up misconceptions about them

 

So Terry, if I have hit my borrowing limit, would investing via trusts be a better option? If yes, then why is it not so widely talked about and are most Brokers not aware of it; and if no, why not? Is there some series of posts or a podcast you have done on this? Will be super keen to follow that.

 

If you have hit the borrowing limit then it is too late for a trust to help you.

Not many people have a good understanding of trusts.

 

I am delighted to see your optimism but the subsequent mortgages are with the same lender with disclosing all the previous trust mortgages as you couldn’t hide them.

 

Very true. If it’s dead, it’s completely dead

 

My trust borrowing has just been with one lender atm, so haven’t lied or couldn’t lie yet.

 

Qld is quite favourable for trust, 350k trust threshold which otherwise would be close to zero if you got a portfolio in personal name very soon with recent changes

 

Hi Terry

could you please elaborate if I didn’t hit my borrowing capacity can I still set up trust and borrow as many loans as I can as long as lenders is okay with that ? by not disclosing my loans on personal name ?
appreciate your thoughts on this ?

 

True. People should know what they are borrowing it for. I prefer any lenders as long as it fulfils their ambitions and goals and you understand the associated risk and accept that. Each to his own, but I got some appetite.

 

If it's all been declared then how do you qualify to borrow more through a trust than what you could have in your personal name?

 

Because some lenders ignore the assets and liabilities under a trust to calculate your servicing, since you being guarantors on the loan. They are declared but just don’t account in calculations for them.

 

Honestly, you cannot hide your loans/liabilities from a lender. And even if you were able to, you shouldn’t.

 

Thanks for clarifying that. That closes that option then.

 

What type of trust is this?

So if your servicing isn’t your main bottleneck for acquiring more properties, wouldn’t the cash required for the initial deposit amount and stamp duty, be the main bottleneck? Have you been refinancing your other properties and pulling out equity, and how hard/easily is it to refinance properties under a trust?

What LVR have you been purchasing these properties for - 95%, 90%, 80%?

 

No

You could potentially set up a company, whether acting as trustee or not, and it (not you) could borrow with you as guarantor and you disclosing existing debts.

 

You don't seem to understand how it works.

 

The majority of people on this forum don’t get it. There is so much conflicting info here - evident from the posts on this thread. Is it a snake oil or some magic portion, or is investing via trusts revolutionary, and considered to be the “next big thing” in property investing?

Have you covered this elsewhere in previous posts or podcasts, or do you have material that you can be referenced? The brevity of your responses only seem to raise more questions.

 

Really?

 

no

 

Could be but it helped me achieved what I needed. The most important entity to convince for me here was my lender and I was successful, nothing else mattered. To me, more than how it worked I was focussed on if it works, as I am not an aspiring mortgage broker.