Considering the option of diversifying portfolio into shares, through a margin lending facility.
As I have plans next year to settle on 1 IP and buy another, I am seeking clarification as to how these borrowings would impact LVR (DSR??).
What I am currently looking at, is say borrowings of between $20k-$50k (still undecided as to the exact amount), leverage would be around 70%. Is this a case of simply adding assets and liabilities to my existing a & l? Any impact on DSR?
James
Just to clarify,
NSR – net servicing ratio?
UMI – ??????Another issue to watch out for, is while ALL lenders will take into account the Margin Loan as a liability, quite a few will not accept the income you derive through dividends etc!
I have a large share portfolio that is heavily but positively geared. A while back I had quite a battle to get a lender to accept a reliable dividend income stream as income!
Max Hugen [email protected]
Alpha Financial
Residential & Commercial Loans
http://www.alphafinancial.com.au
02 9560 3061
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