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  • Profile photo of traceyimbtraceyimb
    Participant
    @traceyimb
    Join Date: 2003
    Post Count: 82

    [:)]A bit of information for people who may be having problems with getting finance. I find the biggest problem I come across is two or three or more credit cards, sometimes $15000 – 20000 or more. Here are a few tips that most of you probably already know – but some may not.

    1. Credit cards – lenders calculate your borrowing capacity on the credit limit not the outstanding balance. Lower your limit to the absolute minimum you need. If you have more than one card – ask yourself why? When the lender sends you a letter to increase the limit – tear it up.
    2. Personal/car loans – these loans really eat into your borrowing capacity. Pay them off as quickly as possible.
    3. Interest free finance – Do you really need that lounge/stereo/computer on interest free finance? This is really just another credit card which must be taken into account.
    4. Restructure your loans – get some advice. Are you getting the most for your money? Could you be paying less in interest and fees?
    Never go to just one lender – call a local mortgage broker, they will come and see you and discuss your future investment plans and the finance you need to achieve them. Check with them on the phone that they offer a free service. Ask other investors for a good contact. If you are unhappy with the service you get – change, find someone else.
    Good luck with your investing!

    ***************
    Tracey Imbuldeniya – Finance Consultant
    Mortgage Masters Financial Services Pty Ltd
    191-193 Stirling Hwy, Nedlands WA 6009
    Email:[email protected]

    Profile photo of wildnothingwildnothing
    Member
    @wildnothing
    Join Date: 2003
    Post Count: 12

    Funny that this should be the first topic I came across this morning.
    I just got a call from my mortgage broker, who is a mate of mine, who told me that my borrowing capacity on my next property would be max $190k. I have no credit cards, 8,000 in the bank, a loan of 170,000 on a unit now worth 225,000. I earnt 42,000 last finacial year with modest pay rises to come in september and 4% next january. I have no other debts.
    I wanted to buy a house for less then 250,000 and wrap it so that the rent from my first unit and the spread on the new property cover my loans and I ould travel for a year.
    The only thing the banks seem to care about is that I earn 42,000 a year and have a 170,000 loan. Max borrowing 190,000 for next property. Don’t argue. What does anyone suggest I do about this?! I am just baout to cancell the inspections I had lined up for today due to the shit house news I got this morning.
    Wild Nothing.

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    It’s all about rental yeild. If you buy a higher yield property your capacity will increase.

    This will be addressed in my “unlimited finance” article – which I’m about half way through.

    Cheers

    Stu

    Property & Finance News
    at http://www.prosolution.com.au

    Profile photo of wildnothingwildnothing
    Member
    @wildnothing
    Join Date: 2003
    Post Count: 12

    How do I prove to a bank or lender that my rental yeild on a wrap will be higher then my loan repayments? Are banks receptive to wraps?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    The trouble is, banks do not like you onselling something htey have a mortgage over via an installment contract.

    Also banks will generally only go on what they consider market rent. This is generally calculated about 5% of the purchase price per year. You can argue that you will be getting more, but have to have some good reasons.

    However, for future borrowings, once you settle on the property they will assess it at whatever rent you are actually getting.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of dynamicduodynamicduo
    Member
    @dynamicduo
    Join Date: 2002
    Post Count: 21

    Hi Wild nothing,Only $190K lend you say?Why not further your search for both lenders and property.$190k would secure you a whole lot of cashflow +ve property where I’ve recently purchased.Good luck
    Brett

    “a true warrior sees misfortune as challenge-not as a curse.”

    Profile photo of IshitaIshita
    Member
    @ishita
    Join Date: 2003
    Post Count: 20

    I agree with furthering the search on finance. Like I read in a book somewhere, just because one institution knocks you back, don’t be discouraged. Move on to another and then another
    Are you using a broker?

    Ish

    Profile photo of IshitaIshita
    Member
    @ishita
    Join Date: 2003
    Post Count: 20

    Oooops!
    Yes you are using a broker…sorry. I’d still widen the search though…

    Ish

    Profile photo of vluu27vluu27
    Member
    @vluu27
    Join Date: 2003
    Post Count: 59

    quote:


    It’s all about rental yeild. If you buy a higher yield property your capacity will increase.

    This will be addressed in my “unlimited finance” article – which I’m about half way through.

    Cheers

    Stu


    Hi Stuart,

    When can we expect to read about your article. Cant wait. [:D]

    Thanks

    Vinh

    Profile photo of hwd007hwd007
    Member
    @hwd007
    Join Date: 2002
    Post Count: 247

    Stu when will your masterpiece be complete ? re; unlimited finance article ?

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Hi Guys

    I have finished it. It’s going through the editing stage. I hope to have it ready in the next couple of weeks.

    Please manage your expectations… you start to worry me when you use words like “masterpiece”. Please, keep expectations low. That way they are easy to exceed.

    Cheers

    Stu

    Property & Finance News
    at http://www.prosolution.com.au

    Profile photo of wildnothingwildnothing
    Member
    @wildnothing
    Join Date: 2003
    Post Count: 12

    For those of you who said that I should widen my search, you are right. I am now starting to look around the net at different towns, most that I haven’t heard of, but I realise that 190k is still enough to do soemthing with. I was just cut that I couldn’t borrow what I wanted. Anyway, I have stopped sticking out my bottom lip, woken up to myself and am looking at other options. My goal somehow changed from making my now negativly geared loan a positivly geard one, to borrowing $250k. Thanks all for the advice.

    And of course I wouldn’t expect tiffany purvis-white to tell me where they bought +ve geared property. Would be nice though[:D]

    Profile photo of wilandelwilandel
    Member
    @wilandel
    Join Date: 2003
    Post Count: 761

    Hey Wild,

    Good on you. Get out there!!
    I’m sure you’ll find a better deal.
    Just open your eyes, and let yourself see.

    With $190K to spend, you could buy two OR THREE!!!!!!!! for the price of one!![8D]
    Good luck,

    Will

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