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Do you have to be in business one year?

Discussion in 'Property Finance' started by Darlinghurst Boy, 29th Sep, 2015.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    if i bought a business say a Cafe or something do you have to wait until after your taxable income is ceclared before applying for a loan?
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Yes. The cafe may have made a profit under the previous owner, but that doesn't mean that it will be profitable under the new owner.

    I've also noticed that people selling a business tend to 'cook the books' to get a better sale price.
     
    larrylarry likes this.
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Unimaginable Peter.
     
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  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    most lenders will want 2 years under the new management

    ta
    rolf
     
  6. Mortgage Capital Australia

    Mortgage Capital Australia Mortgage Broker & Private Lender Business Member

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    Unless of course you were in a similar line of work and use a particular lender who takes your old PAYG income as evidence of servieability.

    Little trick i have tried a couple of times and still can't believe they take it.

    Cheers


    Richard
     
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  7. tobe

    tobe Well-Known Member Premium Member

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    It's fair enough, if it doesn't work with the business worse case scenario is you go back to working payg....
     
  8. jpcashflow

    jpcashflow Well-Known Member Business Member

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  9. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    I was looking at buying a cafe .. Why? They seem very busy here in Sydney .

    But now im looking more for a Sydney Taxi which have gone right down in price.

    If i buy it , the owner wants 260k urgently , then i will just drive myself say Monday to Friday 7am to about 5pm so if i take average $250 a day i will be happy .

    Unfortaetely the Big Banks wont lend equity on taxi plates anymore so i have just the income, one year then will have to wait until i could get a loan.
     
  10. Jamie_

    Jamie_ Well-Known Member

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    Do you really thing it's a good idea to buy a taxi plate with what's been going on? bit of common sense would go well.


    https://get.uber.com/cl/aus-lite/?u...0UJ_3NREdQMZtX-2U6u2vaRtqfnNlI5GKuBoCtXPw_wcB
     
  11. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Uber dont do street hails... Theres always going to be taxis
     
  12. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

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  14. Jamie_

    Jamie_ Well-Known Member

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    Good luck with your business venture, keen to read back in a year at how you went.
     
  15. D.T.

    D.T. Adelaide Property Manager Business Member

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  16. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Its not really a business venture just i have found a Sydney taxi plate with the taxi car selling at a low price , my plan is to eventually drive it myself just monday to friday,and can rent it out to night drivers , But i might just drive it myself .

    Hardly a business that can fail your licensed by the Govt.

    I know green slip is $7500 a year and taxi radio fees are $675 a month .
    If i dont like it or get sick of picking up people i will rent the plate out .
    But i often wonder would anyone buy a business for roughly $300 , 000 to make average $400 a day ? Probaly not many.
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I wouldn't when I can go be a wage slave for $1000/day and I don't pay $300k for the privilege.
     
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  18. Brian84

    Brian84 Well-Known Member

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    I think your dreaming if you think you will get $400/day everyday. Also don't forget insurance,fuel, rego, tolls and the big one maintenance. You drive a car constantly for say 8hrs min a day is going to cost a bit with new engine and transmission.
     
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  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    By nature, gov isnt good at spotting business opportunities

    If your business lives by gov exclusive licensing or by other gov adantage such as subsiddies, its likely not sustainable.

    Live or die by the subsidy !

    ta
    rolf
     
  20. superace

    superace Active Member

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    whether its uber or the next type of taxi service, the original taxi license is going to die a slow death. look whats happening in canberra with the 'legalisation' of uber. in the modern world, those companies and industries that innovate will survive. Sadly the traditional taxi industry was begging for innovation.