Hi Borat

Your BC is affected by your other home loan repayments however each lender assesses this repayment at a different rate.

Some will take the payment as the actual repayment others apply a percentage margin to the rate (i.e 4.5% x 30% and adopt this) and other work off a pre-set figure say 7.25% for everything.

I have written a number of articles on the subject over the last 15 years for API and we include a PDF on our website on how to Turbo charge your portfolio. It explains the varies stages and mirrors how i built portfolio to over 25M in a decade using a variety of positive cash flow strategies.

Cheers

Yours in Finance.

Hi Huilo

No does not apply hence there are still lodoc, nodoc loans in the non coded area of lending.

Cheers

Yours in Finance

Hi Nan

No good brokers here lol

Hate to say the Big 4 lenders probably have the worse serviceability model so not ideal however without the full picture it is hard to advise you further.

I would probably look to establish an equity loan against your property and then use this to access deposits and acquisition costs of the new investment properties. Suggest you use separate lenders for this.

Lots of good lenders out there with sensible serviceability formula.

Depending on the number of properties you intend to purchase you could drop the lvr down to 70-80% to get a better interest rate.

Course just have to ensure you don’t over commit yourself when building your portfolio.

Cheers

Yours in Finance

• This reply was modified 8 years, 5 months ago by  Richard Taylor.

Hi Sharon

Unless i can buy the whole block I personally don’t invest in units full stop.

For me Brisbane is the place to invest but in saying that I am slightly biased.

Cheers

Yours in Finance

Hi JB

Away from the health issues there are a few other things to consider such as resale value etc.

We had a deal from a forum member not so long ago where we asked to do a 80% lvr on a block of land with a view to building on it down the track. When the valuation came back I noticed in 1 of the valuers photos there was power lines close to the block.

I suggested to the borrower we also put in a application based on an assumed construction price which would take the lvr to > 80% as I knew if we did that LMI would look at the deal.

They declined it and the borrower pulled out of the land contract.

Had he proceeded to purchase it and then found he couldn’t get construction funding would have to either save a lot or try and re-sell it.

Moral of the story is unless for some reason you love living close to the power lines avoid them like the plague as you might find it harder to find someone else to take over ownership.

Cheers

Yours in Finance

I believe you would be able to claim a percentage of the LMI arguing it was incurred on the whole loan.

As it is normally claimable over 5 years with the first years proportional you still might be able to get 2-3 years worth out of it.

Cheers

Yours in Finance

Hi Hullo

Yes he would be required to disclose the Australian property on an any application as an asset and the loan as a liability.

Most UK lenders won’t however accept the rent as income towards the servicing of his UK application.

Cheers

Yours in Finance

Hi Ben

At that sort of lvr you should be done sub 4’s.

Being an interest only loan the Bank will probably charge some form of premium but still should be less than what you are currently paying.

Go back to them and tell them you what a payout figure as you are looking at switching lenders and i think you will be surprised how they jump.

Cheers

Yours in Finance

Hi Dean

Not quite correct.

SGB have limited the lvr to 70% on a purchase and a few currency restrictions but still doable as an expat.

Downside is you cannot access equity so your portfolio loan becomes restrictive.

Don’t worry they are not alone.

Just another interesting week in lending.

Cheers

Yours in Finance

Hi RYF

Shoot me an email and I can send you our Turbo charge your Property Portfolio PDF as well as an API article I did on retiring and living off rental income.

Unless the debts are paid down you will be relying on the rents increasing to provide an income to live off and 3 certainly won’t be enough.

It is not the number of properties that matters but the quality of the overall portfolio.

Cheers

Yours in Finance