Getting finance in between contracts

Worth a shot. The contract does prove employment and as said before if you can show the last few tax returns they can get some averages for your income.
My wife is in the same boat, contract work on and off since 2009.

Being in the health industry may also be favourable.
Is over time a big factor? We Found it better to wait for 6mths of payslips, rather than 3mths to get a better %use of the overtime (80%?? From memory)

That's my basic understanding

 

Then the guy can go get a job. It's bonus money.

 

They are Bizarre, they will even finance them at 105%, where some-one who wants to buy property that will increase their income and doesn't need a job cant even get finance at 40% LVR.

 

No bank would lend 105% of a property value. The max you would get these days is 95% and the bank would have forced the borrowed to pay the insurance to cover them for having to take possession and to sell the property at a loss.

 

It all has to do with these people sitting in these institutions coming up with pointless Basel rules, and then the whole world following them. Bizzarre like most sheep-like things in this world

 

Bizzare from your perspective. From their perspective they've got the data and statistics to back up their policies.

The problem with that of course, is the small minority of serious investors (in Australia) is less that 5% of the popularisation which is outside of their data. What you think is reasonable might work for someone who has a bit of experience and reasonable understanding of property investing, but it's not prudent for the other 95% of the population.

So from each parties perspective, you're both right. Unfortunately they've got the money, so they're more right than you are.

 

See this thread:
my not so great investment experience: Cheapie strategy

And you might realise why an income is needed other than rent.

 

Huh? My portfolio has zero in common with the one featured in this thread.

 

I mean to show that things don't go as planned and even if you had good 'cashflow' properties you still need other income to fund them.

 

Something else to keep in mind is that as part of the SMSF loan application, it will be necessary to show a SMSF bank statement with rollover money as cleared funds. It might be the case that by the time the cheque arrives, is banked, clears, and the next statement is issued, you are working in the new contract anyway

 

True. I'm lucky in that I can pick up contract roles easily if needed. Helps that I have the flexibility to go anywhere and remote employers will pay my travel, most accommodation and bills. Agree rental income can vary wildly month to month.

 

Ha ha. The way things are going that's probably how it'll pan out.