Is there no way for me to setup a company and be the guarantor instead of the borrower once I’ve maxed out? Is the only choice to sell my IPs?

I currently own two IPs,

PPOR: Bought for $580k in 2011, now worth $1.6 mil, owing $160k, P&I

IP 1: Bought for $520k in 2017, now worth 700k, owing $520k, interest only (100% LVR), cash-flow positive

IP 2: Bought for $600k in 2019, now worth 700k, owing $600k, interest only (100% LVR), cash-flow positive

Annual working salary…[Read more]

If you put down a deposit (5/10/20%) for an investment property instead of burrowing the full amount, are lenders more willing to let you burrow more for IP purchases?

Thanks for the information. In regard to your last point, what would be the possible ways of extending it?

If I earn $150k a year, have a $300k mortgage and I purchase an investment property for $500k which gives around $2000 a month in rent, do the banks consider my annual income as $174k? Would they also count any depreciation claimed on the property and any tax claims on the tax deductible investment loan towards my annual salary? If…[Read more]

If I earn $150k a year, have a $300k mortgage and I purchase an investment property for $500k which gives around $2000 a month in rent, do the banks consider my annual income as $524k? Would they also count any depreciation claimed on the property and any tax claims on the tax deductible investment loan towards my annual salary? If…[Read more]

I just wanted to clarify a few things if that’s alright (I talk in a discretionary trust sense)

a) When you say to carefully select the director of the trust, should it be the personal with the highest annual income? What are the other important factors to consider?

b) What do you mean when you say ‘avoid using certain lenders’?

c)…[Read more]

If you own a property that has positive cash flow as opposed to negative gearing, would the banks be more willing to lend you more money as the rent received covers the repayments? I think you’d would be perceived as a much bigger risk if negative gearing as your own income factors in to covering the repayments as rent will be lower than…[Read more]

If you own a property that has positive cash flow as opposed to negative gearing, would the banks be more willing to lend you more money as the rent received covers the repayments? I think you’d would be perceived as a much bigger risk if negative gearing as your own income factors in to covering the repayments as rent will be lower than…[Read more]

I have a P&I mortgage on my PPOR of $160k as well as $160k sitting in my offset account. I’m familiar with the concept of debt recycling but I haven’t done it myself yet. Would it make sense to pay down the entire mortgage with the money in the offset account and then access that equity with a LOC to invest in stocks (index fund)?…[Read more]

Thanks for your reply, you were indeed correct! I appreciate the advice.

Cheers,

A fellow novice here. I own an investment property with around a $500k interest only loan. My current repayment are around $1.3k a month while receiving around $1.7k a month in rent. My plan was to have an offset account linked to this property so that I could park excess cash into it which would keep reducing the monthly repayments I…[Read more]

I was told before that between two lenders, the loan amount can vary as much as $300k between two lenders based off the same information (income, credit score, debt etc) Is this not true?

Cheers

In order to increase burrowing capacity to keep buying more property, you have to go to different lenders right? My wife and I earn around $140k and so on top of our home loan, we can burrow another 700k for an investment property. That’s what we have been told by Commbank. Would the correct way to approach lenders be going with…[Read more]

I understand that once an amount has been used up on the LOC, interest is paid on the amount that’s been consumed right? What I mean is once the LOC is drained (all of the money as been used up), how is it repaid? Do I need to get another…[Read more]

I’m a bit confused about how HELOCs work. Let’s say that I draw out a $300k HELOC and I use it to fund the deposit, stamp duty and other related fees of purchasing an IP (total: $100k). Then I use the remaining amount (300-100= 200k) to pay the monthly repayment and interest on the amount taken out (the HELOC acts as a financial buffer)…[Read more]

About the taxable loss, what I mean is that the repayments don’t come out of…[Read more]

Thanks for all that information, really helpful. My question would be this: If I purchase a 700k property as a trustee through a $250k LOC using the equity in my house (LOC funds the 20% deposit, all other associated fees with owning the house including monthly repayments), would this loan structure affect the burrowing capacity of…[Read more]

A fellow novice here. I don’t quite understand why renting is beneficial. Let’s say for eg: You bought a house PPOR for 700k on a interest only loan and burrow the full amount. Just for examples sake. That would result in a monthly mortgage of around $2.2k. By constantly saving and parking excess cash into an offset account, you…[Read more]

I’ve been doing some research into which type of properties to buy (apartment, townhouses, units, houses) and I’ve concluded that townhouses give a solid capital yield (7% per.ann) and decent rental yield (5% per.ann) while having lower holding costs than houses. They are also less expensive than houses and although they don’t provide the…[Read more]

I have around $1 million dollars of equity in my properties ($800k in my house, $250k in my IPs) but I can’t purchase more properties due to my limited income: $130k. It is frustrating because the Commonwealth bank says I can’t burrow enough to purchase another property even though I have perfect credit and a bunch of equity. I did some…[Read more]

I currently own two investment properties (they have a total of about $250k equity) and I was wondering what I could do to increase my burrowing capacity from the banks, beside the obvious like getting a higher annual income. Even though I have the equity in my house (800k+), I’m unable to burrow more money to buy investment…[Read more]