Hi All,
I am new to this website. I have been living off my property portfolio for a couple of years now. I have a mix of residential and commercial property. While my current portfolio is cashflow positive it does not fully cover all my living expenses so the shortfall is funded out of equity and the capital gains on my portfolio. I am currently looking at expanding my portfolio further and stretching my LVR which is currently only around 50%. I am wondering what advice you would give on making the judgement on how far to stretch your LVR when property is your sole income/asset. Financing permitting of course!
With no income at all other than rent, you may find it harder to increase the loan limits at all unless you switch loans over to things like NoDocs and LoDocs.
Thanks Marc.
You make a good point on lending. While some of my lending is full doc – the ones left over from when there was a salaried income. All my more recent lending has been with LoDocs. My Broker seems to be handling the lending reasonably successfully so far. My commercial lending is at a 70% loan and my residential lending is still getting the 80% LOC. I will be interested to see what happens with the next loan given that LoDoc lending has tightened up in the sub-prime issues.Must admit most lodoc lenders havent really tightened up their lending policies too much since the SP Crisis.
Certain lenders have withdrawn their Nodoc products but lodoc has expanded and is a useful tool if used correctly.
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
