Have 4 investment properties being rented at well over1% of the purchase price. 300k in equity.
I am completely maxed out on serviceability and cannot meet requirements for lending bodies based on income thanks to APRA changing the rules.
Would appreciate some ideas so I can continue to grow my portfolio.
Cheers
JanIt would depend on how you are set up now.
PI loans can help
Related party loans can help
joint purchasing could help
sale of one or more could help – but consider whether you could borrow to buy the replacementetc
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Jan
Have a look at non APRA lenders is also another alternative.
Certainly doing a lot of deals in that space at the moment.
Firstly look to access the equity and then use this equity to go with a more generous lender for the new IP’s.
Always a way.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Have you capped out with Nab, Choicelend, Liberty yet?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Get a second opinion – it’s quite common that many borrowers will be told they can no longer borrow any further – but that may only be with one lender, or a limited panel of lenders.
If you’re well and truly out of borrowing capacity the only options are:
*earn more income
*reduce expenditure
*invest in a self managed super fund and OR commercial property where products are available which do not look at your personal servicing.Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Keep some powder dry for great buying opportunites which will present themselves over next couple of years.
If you had 10 as a long term goal, the quicker you get to 5 isn’t necessarily going to be the quickest way to get to 10.
Jason Tyrrell | Turning Point Finance
http://www.turningpointfinance.com.au/
Email Me | Phone MeFinance Strategist and Investor
Hi Jan,
It’s certainly worth getting a second opinion, but at some stage all residential property investors hit a funding wall. This doesn’t mean you have to stop investing, you may have to change your strategy though. A lot of successful investors end up moving to development or commercial property as an example.
Regards
Corey who posted earlier in this thread wrote an article about how you can extend your borrowing further here ^
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
how does smsf’s help your serviceability when you are maxed?
Cheers,
Huilo, the borrowing capacity with many lenders for SMSF is calculated completely different to your personal name – the contributions are counted as income and in many cases your personal A&L is disregarded for servicing. This is an area we’re seeing a lot of clients venture into to increase their portfolios through a tax effective vehicle.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
I see, these contributions how long do you have to wait for it to be considered income? etc i put 1k into super a week only want to do this for 1-3 months to show my super can purchase a property and then i’d stop making the 1k contribution.
also biggest downside is you have to wait till like 55-70 to access it right?
Cheers
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