All Topics / Help Needed! / Increasing Servicability

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  • Profile photo of Peter MichaelsPeter Michaels
    Member
    @peter-michaels
    Join Date: 2005
    Post Count: 1
    June 13, 2005 - 7:54 am

    Hi Fellow Investors,

    This is my current situation. I own or co-own 3 properties.

    Property 1:
    Asset value $510,000 Mortgage Limit $399,950 Current Balance $399,810
    Owner PeterM LVR 80%
    Rented at: $450 pw

    Property 2:
    Assetvalue $325,000
    Mortgage Limit $292,341 Current Balance $292,229
    Owner
    Peter M/RobertG
    LVR 90%
    Rented at: $260 pw

    Property 3:
    Asset value $480,000 MortgageLimit $432,278 Current Balance $432,094
    Owner Peter M/Robert
    LVR 90%
    Rented at: $300 pw

    I’ve been told that I’m currently ‘maxed’ out on my ability to purchase more property & service more debt. Being the optimist that I am, I find
    this hard to believe.

    Perhaps I am maxed out within conventional funding scenarios, but I’m hoping that you people can offer me creative options for changing this paradigm.

    My PAYE income is $70K per annum, in additional to the rental incomes.

    Cheers,

    Peter

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    June 13, 2005 - 8:14 am

    Actually, your income only includes half the rental income on two properties although lenders will look at all the rental income for serviceability. For this little favour, they will also look at all the debt on all properties even though half the debt on two of the properties belong to you.

    This is the big problem with buying with others. Their debts become yours and vice versa.

    You have well over one million dollars of debt to cover with your income. The information you have provided does not outline other expenses like a partner who stays home, children, car loan, credit card limits, other expenses.

    You have also not included interest rates on current loans.

    Although different lenders have different serviceability criteria, the correct information cannot be provided without all the correct details to assess.

    If you want to get ‘creative’, expect some inflated interest rates.

    The Mortgage Adviser

    http://www.themortgageadviser.com.au
    [email protected]
    Essential Links

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    June 13, 2005 - 9:58 am

    Hi Peter,
    Based on the information you have provided I’m not convinced that you are maxed out with all the conventional lenders,
    Keep in mind the serviceability assessment criteria will vary dramatically between lenders, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

Viewing 3 posts - 1 through 3 (of 3 total)

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