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Inheritance

Discussion in 'Property Finance' started by Vacant, 27th Jul, 2015.

  1. Vacant

    Vacant Well-Known Member

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    Location:
    Port Stephens
    Having read through Redom's multimillion dollar thread there was mention of inheritance.

    My question - can you use inheritance as a deposit or do you need to have it for a certain time period to prove its genuine savings?

    My wife is about to inherit a decent sum of money and we have discussed putting it towards a deposit. On paper we look fairly terrible anyway so I don't think we'd have the income to put it towards an ip but I am curious to know if we could if our serviceability stacked up.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Yes you can use it - depending on LVR it might need to sit in your account for 3 months or so, but you can definitely use it if your servicing stacks up. You can also include rental income which can help the servicing side of things.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Get some legal advice before doing anything as there are many strategies to improve asset protection and tax savings.
     
  4. Vacant

    Vacant Well-Known Member

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    Location:
    Port Stephens
    Thanks Jess and Terry.

    We'll certainly get legal advice before doing anything. Just tossing ideas around at the moment.

    In regards to servicing, they would look at the cost of servicing the potential IP loan and our PPOR loan and decide if our income and potential rental income can afford it right?

    I started a sole trader business two years ago and have, as of this financial year, left my job and become completely independent. My last two years have been more successful than I had expected but everything I have turned over has been put back into the business which has run at a loss.

    I'm planning on making a fortune this year (isn't everyone) but is it fair to assume that we won't have any luck getting finance until i can prove a decent income, probably with next years tax return?
     
  5. Mick C

    Mick C Well-Known Member

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    [QUOTE="Vacant, post: 30053, member: 175"
    I started a sole trader business two years ago and have, as of this financial year, left my job and become completely independent. My last two years have been more successful than I had expected but everything I have turned over has been put back into the business which has run at a loss.
    [/QUOTE]

    ^ if it's an "accounting" lost only than that's fine....we can Un-do the accounting " lost" and the lender will accept it as a profit..

    So end questions.

    What's your real trading profit or lost? before tax.
     
  6. Vacant

    Vacant Well-Known Member

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    Location:
    Port Stephens
    Last year my business turned over around $30k, so not very much but the goal was $20k and I have $10k of invoices that will be paid soon.

    The business is oyster farming and I was expecting very little income in the first two years as the oysters I'm growing take 3 years to reach market size.

    Before becoming self employed I was on a $65k salary. Whilst self employment is liberating, a consistent income was very comfortable.

    I'm aiming for between 80-100k this year as a realistic estimate. In theory I shouldn't 'need' to spend much more than $5-10k on operating costs but im looking at a few capital purchases to make life easier.