All Topics / Finance / Servicability

Viewing 11 posts - 1 through 11 (of 11 total)
  • Profile photo of JanDJanD
    Participant
    @janz15
    Join Date: 2016
    Post Count: 1

    Have 4 investment properties being rented at well over1% of the purchase price. 300k in equity.
    I am completely maxed out on serviceability and cannot meet requirements for lending bodies based on income thanks to APRA changing the rules.
    Would appreciate some ideas so I can continue to grow my portfolio.
    Cheers
    Jan

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    It would depend on how you are set up now.
    PI loans can help
    Related party loans can help
    joint purchasing could help
    sale of one or more could help – but consider whether you could borrow to buy the replacement

    etc

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

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Jan

    Have a look at non APRA lenders is also another alternative.

    Certainly doing a lot of deals in that space at the moment.

    Firstly look to access the equity and then use this equity to go with a more generous lender for the new IP’s.

    Always a way.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Have you capped out with Nab, Choicelend, Liberty yet?

    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 Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Get a second opinion – it’s quite common that many borrowers will be told they can no longer borrow any further – but that may only be with one lender, or a limited panel of lenders.

    If you’re well and truly out of borrowing capacity the only options are:

    *earn more income
    *reduce expenditure
    *invest in a self managed super fund and OR commercial property where products are available which do not look at your personal servicing.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Jason TyrrellJason Tyrrell
    Participant
    @jason-tyrrell
    Join Date: 2016
    Post Count: 6

    Keep some powder dry for great buying opportunites which will present themselves over next couple of years.

    If you had 10 as a long term goal, the quicker you get to 5 isn’t necessarily going to be the quickest way to get to 10.

    Jason Tyrrell | Turning Point Finance
    http://www.turningpointfinance.com.au/
    Email Me | Phone Me

    Finance Strategist and Investor

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Jan,

    It’s certainly worth getting a second opinion, but at some stage all residential property investors hit a funding wall. This doesn’t mean you have to stop investing, you may have to change your strategy though. A lot of successful investors end up moving to development or commercial property as an example.

    Regards

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    http://www.ripehouse.com.au/thefrontierinvestor/post/Building+a+large+portfolio+through+structured+lending

    Corey who posted earlier in this thread wrote an article about how you can extend your borrowing further here ^

    D.T. | DT Property Management
    http://www.dtproperty.com.au
    Email Me | Phone Me

    Adelaide Property Management - whole Adelaide metro

    Profile photo of huilohuilo
    Participant
    @huilo
    Join Date: 2015
    Post Count: 21

    how does smsf’s help your serviceability when you are maxed?

    Cheers,

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Huilo, the borrowing capacity with many lenders for SMSF is calculated completely different to your personal name – the contributions are counted as income and in many cases your personal A&L is disregarded for servicing. This is an area we’re seeing a lot of clients venture into to increase their portfolios through a tax effective vehicle.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of huilohuilo
    Participant
    @huilo
    Join Date: 2015
    Post Count: 21

    I see, these contributions how long do you have to wait for it to be considered income? etc i put 1k into super a week only want to do this for 1-3 months to show my super can purchase a property and then i’d stop making the 1k contribution.

    also biggest downside is you have to wait till like 55-70 to access it right?

    Cheers

Viewing 11 posts - 1 through 11 (of 11 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.