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Boris

6 months ago

It is clear - thanks a lot Kelvin

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kelvin

6 months ago

Unit or Hybrid trusts suit that situation of unrelated parties - only an accountant can advise the best structure - but both have the same lending options.

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Boris

6 months ago

Hi Kelvin, thanks for your response. I understand situation with Hybrid trusts. Our investors not related to each other so how to create family trust? So "Unit trust" would be the best option for us? Please clarify. Thanks

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kelvin

6 months ago

Hi Boris - Hybrid trusts are not the easiest lending structure - family trusts are. If you have advice around why your setting up the Hybrid trust - lending can be one limitation. For servicing - simply we check who benefits from the trust and check their personal income capacity (so they can be servicing / security guarantors) and base the lending on the new build + rent and any existing.

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Boris

6 months ago

So person or company with substantial asset acting as trustee is the best way to get loan. And combined income of members of trust dos not help much. Is it correct?

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Boris

6 months ago

Hi Kelvin, Many thanks for your response. The fact is we are at the very first step and need clear idea what would be required to get full doc or low doc loan for trust. Let’s say 10 people in trust and combined income is $400,000 a year. Trustee's income $80,000 a year. What kind of loan can be approved with full doc and what percentage of property cost would required for low doc application? Could you please clarify? Best regards, Boris

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kelvin

6 months ago

Yes we can deal with Hybrid trusts. At the end of the day we require the trustee to go as guarantor so the style of trust is really not that critical. Typical either full doc or lo doc resi rates ( assuming resi security. Happy to help

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