All Topics / Finance / How positively geared commercial investment affects borrowing capacity

Register Now for My Free Live Training Series!
Viewing 1 post (of 1 total)
  • Profile photo of o0tegs0oo0tegs0o
    Join Date: 2010
    Post Count: 21

    My husband and I currently have pre-approval to borrow up to $2 mil. We were looking to purchase our PPR but are now looking at the possibility of purchasing a commercial investment in the meantime ($1 mil value) and PPR in 12 months time.

    The commercial investment would provide a net income of circa $55k per annum.

    My question is around how the banks view this asset i.e. we’ll effectively consume $1mil of our current borrowing capacity with the investment but given it will be providing a net return of $55k per annum, will that mean the banks allow us to borrow more than the original $2mil or less?

    Any insight appreciated!

    • This topic was modified 1 year, 6 months ago by Profile photo of EdenGrange EdenGrange.
Viewing 1 post (of 1 total)

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