Looking for a lender

Discussion in 'Loans & Mortgage Brokers' started by Sulo, 12th Oct, 2020.

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  1. Sulo

    Sulo Member

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    Hi there,

    We are from Brisbane but currently based in Qatar for work reasons. Looking for a lender who recognize our overseas income and that can facilitate lending for a small sub-divisional project (~1M) with the title of the property under a trust.

    I am a long term customer with one of the big four banks the problem is they shade off 80% off the income as we are overseas residents and from my understanding this is the case with most banks.

    I have used a broker recently but the property title had to be in our names (we as the trustees offered a personal grantee but the bank still refused).

    Thanks for your recommendations, appreciate any feedback.

    Thank you all.
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    The answer to your first question is Qudos - they are an excellent lender that take on Qatari Riyal and they don't shade the income. They will take 100% of the converted income which makes a huge impact on servicing.

    Your second question is a little confusing though - the title is under a Trust? Are the trustees Individuals or Corporate Trustees? If you are overseas you need to have a director in Australia. Do you have this?
     
  3. Sulo

    Sulo Member

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    Yes we did look at Qudos (via the broker) but they want the property names to be under individuals.

    The property is under a family trust and me and my wife are the trustees of the trust. Does that make scene ?
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Qudos dont do trust or company application.

    So the title is under a Trust with individual trustees and not a corporate (Pty ltd) entity is that correct?

    Are you and your wife the only directors or individual trustees?

    You have applied with a lender and they have advised that the title must be individual names?
     
  5. Sulo

    Sulo Member

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    Individual trust correct and we are the only trustees.
     
  6. Trainee

    Trainee Well-Known Member

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    What are the implications of a trust with no resident trustees?
     
  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Corporate trustees need to have one director based in Australia but I'm not sure if there is such a requirement for personal trustees. Why has the lender requested that the title be in individual names and which lender was this?
     
  8. Terry_w

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

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    It will be a non-resident trust which creates a tax mess. CGT will be trigger on assets other than Taxable Australian Property as a deemed disposal at the point of non-residency. plus more
     
    Parkzilla likes this.
  9. Terry_w

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

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    I hope its not a unit trust with you both as unit holders!