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Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of WaitNoMoreWaitNoMore
    Participant
    @stefanz
    Join Date: 2014
    Post Count: 14
    July 15, 2014 - 9:47 pm

    Guys I’m going to start doing small renno’s to increase my cashflow but I do find decent buys here and there for positive or neutral property that I would like to buy. If I purchase IP that’s positive I can service the loan and do my renno’s on the side but will the banks see it that way? I don’t want to reduce my borrowing cap for flipping and a development project mid next year.

    Any subjections

    Cheers
    Stefan

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575
    July 15, 2014 - 10:32 pm

    Hi Stefan

    It all depends on a few factors and by the way good question.

    Setting up your portfolio to meet your goals is essential.

    Have you talked to your broker yet about what you want to achieve?

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    July 16, 2014 - 4:29 am

    Hiya

    There’s two ways to look at this.

    If you’re a PAYG employee they will want to see that your income from salary/rent can support the loan.

    If you’re self employed, they will want to see a couple of years financials and rent.

    If you don’t qualify for mainstream lending than you might have to investigate other avenues.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of WaitNoMoreWaitNoMore
    Participant
    @stefanz
    Join Date: 2014
    Post Count: 14
    July 16, 2014 - 2:59 pm

    ATM my broker is sorting out my loans. I have just over 200k equity in my home and 20k cash. I’ll have 420k for IP to flip with 40k for renno at 80% finance. 20k cash is back up. I am a PAYG employee and earn about 110k. Wife about 41k part time.
    Hopefully after a few flips I’ll have sufficient cash flow to go into a joint venture mid next year.
    Before I question my broker to see her skill set, do you guys think I can purchase an IP to hold that’s neutral or positive without affecting my borrowing for the first flip?

    Thanks
    Stefan

    Profile photo of WaitNoMoreWaitNoMore
    Participant
    @stefanz
    Join Date: 2014
    Post Count: 14
    July 16, 2014 - 3:02 pm

    Thanks Jamie. So if my rent covers the mortgage on that IP then it wont affect my finance for flipping. Is that right?
    Cheers
    Stefan

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 17, 2014 - 9:45 am

    Hi Stephan

    It will depend on the lender.

    Some lenders will service the external borrowings at the actual rate / repayment whilst others will calculate it using a sensitised rate.

    Your Broker will be able to advise you.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 6 posts - 1 through 6 (of 6 total)

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