Beyond Traditional Limits: Owning Property With Trusts

A Quick Overview

Imagine you’re a 29-year-old with a clear vision of expanding your property portfolio, and you’re dealing with the complexities of trust structures to make it happen. This was Matthew’s reality.

With a few successful Airbnb ventures already under his belt, he was determined to take the next step and set his sights on buying a new investment property in Brisbane.

Matthew wasn’t just dreaming; he was taking calculated steps towards making it a reality. He made sure to have some savings and maintained an excellent credit score.

The Challenge: Juggling Trusts And Borrowing Power

Matthew’s financial landscape was a bit more complex than the average investor’s. He had a unique strategy in mind: purchasing the property under a trust structure. This approach allowed him to isolate his new investment from his existing profitable trust, thus excluding the existing trust from his debt profile. The goal was to maximise his borrowing power, a major factor given that including his other trust properties would greatly reduce his loan eligibility.

While Matthew earned a solid income as a teacher and had a successful track record managing rental properties, his unique financial setup posed a great hurdle. His primary challenge was finding a lender that would not only understand but also accommodate his special needs.

The Solution: Jonathan’s Expertise Made The Difference

Jonathan Preston, a Home Loan Experts Senior Mortgage Broker, stepped in to guide Matthew. A quick glance at Matthew’s plan revealed potential hurdles. Trust structures, while beneficial, could complicate loan eligibility by tying Matthew’s borrowing power to his existing properties – exactly what he hoped to avoid.

Recognising this, Jonathan meticulously assessed Matthew’s living expenses, income, and existing debt positions. He spent considerable time researching various lenders and their policies on trust structures and loan eligibility. He then explored a range of lending options that could cater to Matthew’s needs.

His effort paid off. Jonathan found a lender with a flexible policy willing to accept an accountant’s letter verifying the profitability of Matthew’s trusts. This pivotal step excluded the trusts’ liabilities from the borrowing assessment, maximising Matthew’s loan capacity.

The Result: Matthew’s Investment Property, Secured

With Jonathan’s expert assistance, Matthew secured a loan amount of $444,000 at a competitive interest rate of 6.59%. This loan featured a three-year interest-only period, providing Matthew with additional flexibility in his early repayment years.

The loan also offered features like a redraw facility and offset account, giving him even further control over his finances. With this financing in place, Matthew successfully purchased a strata property in Brisbane valued at $600,000, solidifying his investment portfolio.

This Matters: Don't Let Complexities Stall Your Dreams

Matthew’s case is a perfect example of how complex financial situations can be navigated successfully with the right expertise. Jonathan’s ability to find a lender willing to consider the unique aspects of Matthew’s financial setup and secure a loan with favourable terms was crucial in turning Matthew’s investment goals into reality.

Are You Ready To Realise Your Investment Dreams?

If you’re facing unique financial challenges or looking to expand your property portfolio, our team of dedicated expert brokers is here to help. We understand that every situation is different, and we’re committed to finding the right home loan solution for you.

Reach out to us today at 1300 889 743 or fill in our free online enquiry form to learn how we can help you secure the ideal mortgage solution and confidently take the next step toward financial success.