Imagine if lo doc/no doc loans were still around

In our case we need to sell a couple of kids...
In the meantime we are changing our focus from property to other asset classes (shares, etc). I'm just sad because I like property best. Its so much more fun.

 

I hope you have lots of fireproof clothing...shares are toxic and burn money

 

Yeah, used them, I liked them as it was less stuffing around and was easier when you had mixed incomes, you still had to pay so I can't see any difference apart from those that may abuse them.

 

Who offers these products is it pepper or others?

 

ANZ and St George and other majors still offer low doc loans.

 

But don't they still ask for two returns. Not just a letter.

 

Pepper and Adelaide Bank would be your first ports of call for "accountant letter" Lo Doc's ... See attached

Otherwise, at most other lenders you'll need to produce BAS statements, trading statements etc...

 

I am actually enjoying the tighter rules to be honest...
When there was no regulation every one was a investor and developer.

When things get tight... it takes more time, creativeness and skill to get ahead.

 

I have three years returns, but my concern is this year I have a lot on (and new development income) and will have equity but not serviceability I think to do everything I want to do. I'd be happy to put 30% down and just sign a statement and service out of LOC until everything tennanted and the refi.

 

RAMS

 

RAMS an accountants letter certifying income, however only upto $750K, otherwise they will need BAS

 

With current Sydney house prices $750k will get you a shed!

 

Disagree with this.

Investors can and do make mistakes regardless of the financial climate, still comes down to the investor, what they are buying, when they are buying etc.

Lo Docs are still available today just different guidelines.

MTR

 

Who is crazy enough to be buying in Sydney when the market has peaked???

 

I too think it is better being tighter, every man and his dog has become an investor, this has caused the issue now where I/O may be harder to renew etc

On the Low Doc loans now, my understanding is you have to be registered for GST ? Either way, if you register for GST yet not collect any, what headaches does this produce ?

 

Not correct, you don't have to register for GST

 

Ah ok, your talking about with RAMS ?

Some must require registering with GST, as I used to use lo doc and that is what stopped me from using them again and used full doc, which has not been a problem apart from, as said, the stuffing around.

 

You do if you or your accountant intends to disclose an income of over 75K.

 

Perhaps other lo doc lenders???
Not with RAMS unless you are lending is under 750K

MTR

 

Lo Docs smell trouble for me simple as that...