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Great News if you are Stuck

Discussion in 'Property Finance' started by MTR, 27th May, 2016.

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  1. MTR

    MTR Well-Known Member Premium Member

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    Just thought I would give you an update.

    RAMS has now increased low doc limit upto $1,000,000, also residential loans for developments, this is massive.

    However one stipulation, your accountant must sign off on your income. I have used this product before, low interest rate and excellent product.
    Accountants are off the hook, its in the fine print.

    This is an excellent product and a very cheap option if developing


    MTR:)
     
    Last edited: 27th May, 2016
    Brian84, Perthguy, Leo2413 and 11 others like this.
  2. euro73

    euro73 Well-Known Member Business Member

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    Screen Shot 2016-05-27 at 5.09.54 PM.png
     
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  3. MTR

    MTR Well-Known Member Premium Member

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    The reason I love RAMs as a developer using residential finance is I don't have to sell any OTP prior to building

    The developer next door has used commercial finance far more costly, prior to commencing his build he had to sell 1 townhouse to meet bank/commercial conditions
    Just shows you can look outside the box and save money, time and keep moving forward making money work for you
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    What is their max number of units you can do with that deal @MTR?
     
  5. MTR

    MTR Well-Known Member Premium Member

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    I know they do 4, could be more, give them a call:)
     
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  6. Xenia

    Xenia Adelaide Property Manager Business Member

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    This has to be better than doing private finance
     
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  7. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    When it says 'low doc' - what is the definition and criteria of 'low doc'?
    Is it case by case?
     
  8. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    *reliant on being self employed with an accountant willing to sign off on your income (which if you have sufficient income for the accountant to be willing to declare, you'll likely have full financials to save 1%+ on rate)

    Self declaration of income based products are always useful if there's a niggling issue with your financials, rapid increases in income etc of course.
     
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    2 year rgistered ABN

    GST reg if income is greater than 75 k

    accountant willing to sign off on income

    Rams fran or allied broker willing to sign of on responsible lending components of the deal if regulated ( ie PPOR or resi investment in personal names)

    ta
    rolf
     
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  10. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Thanks @Rolf Latham.

    So is low doc irrelevant for someone on PAYG?
    Or could there be some benefits for PAYG person also?
     
  11. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    For the most part - not that relevent for most PAYG. The exception being for commercial low doc - which can be used to push serviceability indefinitely for PAYG or self employed borrowers. I've written about these products in the commercial section of the forum.
     
  12. D.T.

    D.T. Adelaide Property Manager Business Member

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    Bit of a catch 22 isn't it? If you had a legit accountant to sign off on it, you wouldn't need the product anyway?
     
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    there are some circumstances where lo doc can be a useful and legitimate use for PAYG,who are registered with an ABN and GST,and the primary income is NOT from PAYG

    Shielding technically unacceptable sources of income from lender, eg gambling proceeds, Capital gains, some forms of share/forex/pixie dust trading schemes, some forms of MLM income etc

    Obviously, responsible lending practices still need to be adhered to!


    ta
    rolf
     
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  14. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Can be handy if you aren't ready to lodge to ATO because you are holding off until deadline.
    Also what your business income is and what you end up lodging to ATO can be vastly different in regards to all the deductions you can claim.
     
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  15. MTR

    MTR Well-Known Member Premium Member

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    As a developer you can have projects ready go but did not actually sell prior to the financial year and that income can not be realised, this product is very handy.

    Regardless if I can go full doc or not, this product is excellent because its just very easy, no jumping hoops, and you can go resi loan and save money.

    In this current environment its a nice one to have up your sleeve.
     
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  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Just because there is some sort of disclaimer doesn't mean accountants are off the hook. They are very much on the hook with this sort of thing.
     
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  17. MTR

    MTR Well-Known Member Premium Member

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    I am not so sure? How many would go to court with this disclaimer in place?? Not me.

    Same as accountant preparing tax, does accountant ever wear liability?

    At the end of the day the accountant signs off on income and in part is reliant on the information he/she is given.

    My accountant knows our financial position but I am providing expected outcome, there are never guarantees either?
     
    Last edited: 28th May, 2016
  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    What does the disclaimer say?

    The accountant could be sued on a few angles:
    - client not being able to afford the loan
    - broker
    - lender

    Especially where overstating income is involved.

    I am not criticising the low doc concept - just that point you made about accountants 'being off the hook' as this is not the case.
     
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  19. MTR

    MTR Well-Known Member Premium Member

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    Its been brilliant for me, I have used it for my Thomastown project and I expect I will continue to use where necessary. Its cheap money and more important I don't have to jump hoops. In current environment this certainly comes in very handy.
     
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  20. tobe

    tobe Well-Known Member

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    1mil to 80% with accountant dec. 70% cash out.

    With bas unlimited. 1 year abn 70% max. No requirement for gst reg, but obviously with income over 75k you need to be registered.

    Account declaration signs off on rental income too. No need to provide rental statements.
     
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