How do I increase serviceability once pay is decreased?

Discussion in 'Investment Strategy' started by Hodgo, 18th Mar, 2016.

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  1. albanga

    albanga Well-Known Member

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    An IT company that does property development on the side, hmmmmm I think you will have yourself a number of problems there.
     
    albanga, 18th Mar, 2016
    #21
  2. Hodgo

    Hodgo Well-Known Member

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    yeah that's what I presume, so I may end up creating another company purely for property dev.
     
    Hodgo, 18th Mar, 2016
    #22
  3. Phantom

    Phantom Well-Known Member

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    Basically, to get a lender to accept income in a company for the purpose of a loan they will want to see that that form of income is regular income and that it is consistant for a certain amount of time. The amount of time depends on the lender. You will need a proven track record of doing this with the primary income of the company being development. Unless you can do this, chances are it will be very difficult. The entity in which you do it for lending purposes won't be too different. They will all need to satisfy the above conditions. Seek professional advice if you are serious about this. Be aware of the risks as @Terry_w has mentioned regarding entity structuring.
     
    Phantom, 18th Mar, 2016
    #23
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    One off income so won't be taken into account - probably.
     
    Terry_w, 18th Mar, 2016
    #24
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