Hi,

If I become a guarantor for my mother’s purchase will I be able to limit the guarantee to a certain amount. e.g. a purchase price of $1,000,000. Say she has deposit/cash of $500,000, my mother to borrow $500,000 and I be guarantor for $250,000, i.e. if I was not guarantor she could only borrow $250,000 and purchase a less desirable property…[Read more]

If a single person living with parents earns $60,000 pa before tax and they didn’t have any property and no other loans/liabilities, around how much would he be able to borrow in a personal/unsecured loan from a bank/lender? e.g. in the situation of a family emergency. Thanks.

Is car allowance usually counted towards borrowing capacity or is it just the base salary that counts?

If I reduce my credit card limit from $1000 to $500, around how much more borrowing capacity would I be able to get?

Should I ask my mortgage broker for an estimate of how much I can borrow to plan things before asking for a pre-approval, or is it I should just ask for a pre-approval to get a more accurate figure?

At the pre-approval stage, when working out borrowing power, are the following taken into account: rent/yield, depreciation, tax deductable expenses,…[Read more]

Which author/mentor/trainer/coach/speaker etc strategy did you follow for the main property investing strategy that you are currently using?

Is it correct that a fixed interest rate gives more serviceability and a higher loan amount because of the lower than 2% loading of the interest rate that applies to a variable interest rate?

If so, would it be a good strategy to go fixed for one year to maximise the loan amount and then back to variable after that. Because fixed usually doesn’t…[Read more]

Rather than keeping the first IP and buying a second IP, do you think it’s better to sell the first IP, and then buy a higher value IP. e.g. first IP is $300,000 in value, if I don’t sell it, let’s say that I have the capability to buy a second IP for $300,000. But if the first IP is sold, I could buy an IP in a higher capital growth area for…[Read more]

I’m looking to buy my first property, an IP as soon as possible.

Initially I was considering 95% LVR, but after reading other posts it seems there is more risk in the loan application being knocked back, so I may go 88% LVR + capitalise LMI.

I plan to buy an IP for around $330,000

So I need 12% deposit. How much genuine savings do I need to…[Read more]

What happens at the end of the 5, 10, or 15 year IO period? Say it was 5 years IO. To get another IO period would require another loan application right? So if I have lower employement income at that 5 year mark or become unemployed at that time, would it just revert to P&I without the need for a loan application? If not, I think it’s safer to go…[Read more]

Hi,

I’m looking for a new job, and then will buy my first property – for investment.
If the job has a base salary of $40,000 p.a. with commission/bonus which can result in an annual income which can be as high as $150,000 p.a.. Is that better than a job that is $50,000 p.a. with no commission/bonus. Which one has more borrowing capacity? i.e. do…[Read more]