- BrettParticipant@brettgarlandJoin Date: 2019Post Count: 3
Hi Property Investors.
I recently tried to refinance a loan to complete some renovations and was knocked back as my ratio of rental income exceeds my salary. We are currently getting approx 120K in rental income, portfolio is roughly $2.5 with approx 350k in loans. I would love to start looking at another property using the equity we have but don’t want to waste time applying for finance if it will get declined based on serviceability.
NB: Loans are in personal names
Does anyone know of a solution around this?
Cheers BrettTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
You need to seek credit advice from a broker. Was the reason that you failed serviceability or that you were too rent reliant?
As a guide you could generally borrow 7x your annual pretax income – very rough.BrettParticipant@brettgarlandJoin Date: 2019Post Count: 3
sorry for the delay in responding. We were told it was too rent reliant. How does one get around this?
I’d love to leave my job and become a full time property investor. But just don’t know how to proceed.
brettTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213Alex480Participant@alex480Join Date: 2021Post Count: 0