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Converting cash into a debt

Discussion in 'Accounting & Tax' started by dabbler, 25th Oct, 2015.

  1. dabbler

    dabbler Well-Known Member

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    There must be a way to do this, where you do not bother family etc.

    So if you get a cash lump sum, and you want to invest, but you want to borrow 100% and costs, can anyone suggest a simple way.

    paying down home and re draw not ideal, home may become IP and already would only have 50% LVR in regard to deductible, no going for refinance either, that is def done for now.

    So how best to quickly do this ? Will any lender lend against deposits ?

    Any other suggestions ?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Borrow against the cash.
     
    Blacky likes this.
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  4. Perthguy

    Perthguy Well-Known Member

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  5. dabbler

    dabbler Well-Known Member

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    I will have to see if any lenders will do this that I use, I would assume you have to meet servicing with them.

    I suppose cash could be used to do some capital improvement, which would allow draw down from a security, but that is slow and clunky and not without a fair bit of risk.

    With borrowing from others, would it pass the test if no interest was paid for an interim period of say a year, then you draw down from equity in same security later on to repay the loan I see potential complications, maybe in cash transactions, also the usual problems when doing things between family/friends & how a spouse may feel as well.

    I will do a lot more reading tonight, thanks guys !
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    see
    Legal Tip 38 Spousal and Related Party Loans https://propertychat.com.au/community/threads/legal-tip-38-spousal-and-related-party-loans.1872/