All Topics / Finance / Serviceability

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  • Profile photo of psrpropertypsrproperty
    Join Date: 2020
    Post Count: 3

    Not sure if it has been asked before. But, how to keep having the serviceability to get the home loan, so that I can keep on buying house that generate positive cash flow?

    To give more context, my understanding is that even though the property I have generate positive cash flow after deducting the home loan repayment, I would already max out my serviceability to borrow more from the bank to buy new houses.

    So, how do people own many houses do it, to grow borrowing capacity?


    Profile photo of BennyBenny
    Join Date: 2002
    Post Count: 1,416

    Hi PSR,

    I recall one or two examples in the “big picture” topic – here’s the link to one of them:-

    As Richard Taylor says in there, along with the theory espoused, the structuring of your borrowings is also very important, so go looking for words around that too.  Using a Mortgage Broker who knows their stuff is also a smart move (one from on here would be a good start).

    And another  This one leads to two other links – do check them both out.  Do note that Steve would be saying to plan to purchase the outcome you want (i.e. don’t just buy anything and hope for a positive outcome – instead buy SOMETHING that will lead to the outcome you want).   Of course there is so much more to it all – but those links may just fire up some extra thoughts….


    PS Do note the dates on these topics.  Some go back several years, so lending laws and Interest rates will be quite different to today (and some “numbers” won’t seem to make much sense in today’s environment).


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