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Thanks so much for your clear explanation, Jacqui.
I very much appreciate to get known these information that we didn’t consider.
Totally agree, I live not far from footscray, love inner west melbourne!
I was narrow minded one who claimed I would never live in western suburb. But since we moved here three years ago, I absolutely love here. We were renting first, then we decided to buy a house here. Compared to the places that I have lived before (balaclava, abbotsford & preston), inner west offers so many facilities and have most kindest people, the community supports young families in a very inclusive way.
But if you have to choose between Point cook or Altona north, I would choose Altona north.
Thanks so much for both of your replies!
I am in Melbourne too, and much prefer house rather than apartment or unit. But the guy said the banks will not only look at my income (rental & employment), but also look at the ratio of annual rental income and the first investment purchase price.
So in the same area, if i spend less money to purchase a unit, and if the rental income for the house and unit is roughly the same, the ratio for unit is higher, that is what the bank want when it comes to assess the borrowing capacity for the second property.
Do you think this is not true?
Thanks SO much for your explanation, Richard. I feel much clearer after reading your reply.
I will contact you this week.
Thanks so much Jamie for telling directly that our capacity is tight. We really just need a simple sentence just like this from them so we didn’t have to spend weeks wondering what the problems are.
I will also look into the structure, some lenders told us to release lots more equity than 20%, others only focused on investment loan and didn’t mention about the equity at all. There is one who mentioned similar loan structure like yours.
Some also said to get a loan that bonds our own property and investment property together, but I thought it would be better to separate two loans.I could be wrong.
I feel sorry to those brokers who work hard and really help people, I also feel sorry to many people like us who just totally lost in the confusion.
Thanks very much, Richard. I wish they did the same as your company.
Do you mind advising me further what the couple of variables are that influence our lending capacity.
Thanks for your time.
Thank you Jacqui for your analysis.They are very helpful but I think I can give a bit explanation.
They are insanely busy and cannot keep up with demand
– I totally understand this is the case, but I called several times during the week after our initial consultation, I didn’t get any answer. The problem is that all the brokers had done basic calculation and seemed everything was ok with their lenders at the initial meeting. I was just calling to provide a bit further information. I can see we are not the easiest case as our low income, they probably got much better clients to spend time with. But just a bit sad and confused why they were all very kind and friendly at the initial meeting and changed suddenly.They did not realise you had further questions beyond your initial enquiry;
– I feel this is unlikely because we had arranged to contact further for the extra documents on the initial meeting. They definitely knew the arrangement.They did extensive research on your behalf and then got the impression you didn’t wish to proceed (misunderstanding perhaps).
– I am not sure about this one, and I don’t understand why they suddenly assumed I don’t wish to proceed once they did research on my behalf. Do you mean they did a bit more research with the banks?Sorry I am very new here and thanks for your time!
