It is possible to borrow money with bad credit

This is not true.

Its a bit more complex than this but very rough this is the case. Lender calculations are hidden behind the scenes though. They will also use living expenses worked out on the higher of what you are spending or one of the spending indexes.

In most cases borrowing capacity is only 6 to 8 times the borrowers pretax annual income. If you earn…[Read more]

If you don’t qualify to borrow then you won’t qualify to guarantee…

Don’t believe everything you hear is the first thing.

Second thing is that lending tightened up significantly in 2009 when the NCCP Act came in and again in around 2017 when APRA started trying to cool the market down by curbing lenders. So ask the people when they acquirered their properties.

If you have already tapped out it might be too late,…[Read more]

With low doc loans you will need some sort of proof such as bank account statements or BAS.

This is a bit out of the box thinking – you could get a job!

what do you mean? The borrower is first asked to repay the loan with the guarantor only liable if the borrower doesn’t.

There are low docs still out there, but you will need to declare an income still – and pass serviceability. If the income is too low you will still not service. You will also have to supply limited evidence of the income which might be bank statements, bas or accountant letter or a combo

Yes you would be borrowing $500k in that instance.

Yes

That means you are borrowing the deposit

There are hundreds of ways to improve serviceability. You should speak to a broker aboutt specific things that might work for you.

One simple one is to go PI on all loans and extend back to 30 year terms.

the less you borrow the easier it will be, but it depends on where you are getting the deposit money from

Not really. They will have a complex calculator which takes into account a percentage of your salary income and generally 70% to 80% of the rent.

These days I don’t think any will take into account depreciation, but some will take into account interest being deductible.

You coudn’t keep borrowing to buy similar properties because you…[Read more]

It is really irrelevant whether a property is cash flow positive or negative for finance. Every bit of income helps, but the risk is still the same for the lender and serviceability must be passed.

For a property not to affect serviceability, in theory, it would need to have about a 11% yield. But most lenders will cap yields for…[Read more]

All the other legal issues. Being a director is potentially dangerous and burdensome, but not being a director means loss of control.

Each lender has a different policy to other lenders so some will be good for what you are after others will not be good.

A trust is not a separate legal entity, but a company is. So the debts of…[Read more]

All the other legal issues. Being a director is potentially dangerous and burdensome, but not being a director means loss of control.

Each lender has a different policy to other lenders so some will be good for what you are after others will not be good.

A trust is not a separate legal entity, but a company is. So the debts of…[Read more]

see

https://www.propertyinvesting.com/topic/5076532-best-owner-structure-to-minimize-land-tax-2/

You need to seek credit advice from a broker. Was the reason that you failed serviceability or that you were too rent reliant?

As a guide you could generally borrow 7x your annual pretax income – very rough.