How positively geared commercial investment affects borrowing capacity

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, 7 months ago by  EdenGrange.