澳洲Australia property Hit a brick wall with Serviceability - br

在澳大利亚


Hi Brokers:)

I post a fair bit on propertyinvesting.com though was recommended to try this forum for finance gurus:)

My problem is that I’ve got 2 IPs and a block of land (owned jointly) and am having problems getting finance for further properties.

After talking to my broker he says that I and my partner can only borrow $190k jointly as we are unable to service a higher amount. Anyway, I’ve heard that when people face serviceability issues they start looking at low doc loans??

Our aim is to purchase a PPOR for around $240k and to get the stamp duty etc included in the loan, so I guess the total amount we are looking for is around $250-$260k.

I’ve listed our situation below so if any brokers out there (preferably Perth based) can help us, I look forward to hearing from you:)

Cheers

Wayne


Our Current Situation

- We are both renting a house in beldon, perth for $210 p/w.


Wayne's Assets

4x2 in Merriwa
- Mortage owing = $219k
- Market Value = $230k
- Rented at $215 p/w
- Monthly repayments = $1,282

3x2 in Merriwa
- Mortgage owing = $118k
- Market Value = $220k
- Rented at $195 p/w
- Monthly repayments = $691


Block of land in Yanchep (jointly owned with Lisa)
- Mortgage owing = $216,500k
- Market Value = $205k
- Monthly repayments = $1,267


White goods etc = $15-20k
Car = $4k
Credit card = $1k limit
Shares = $1,000
$5k Savings

Wayne's Income
- $45k per year
- $675 p/w


Lisa’s Assets
Block of land in Yanchep (jointly owned with Wayne)
- Mortgage owing = $216,500k
- Market Value = $205k
- Monthly repayments = $1,267

White goods etc = $10-15k
Car = $12k
Credit card = $1k limit

Lisa’s Income
- $35,780k per year
- $550 p/w  

评论
Hi Wayne,

I'm not a broker, nor have any advice about where you could get more money.

But why do you want to borrow more for non income producing property??? You have $655k of property but $553.5k of mortgage. Thats already over 85% leverage.

Your income (with the rentals) also appears a little low to support further loans, I suppose that is why you want help. You are meant to tell the truth on a lo-doc application, not a wishful thinking salary level.

bye  

评论
Hiya

Key question I suppose is can you afford the extra repayments ?


ta

rolf  

评论
Hi Bill,

To be upfront, I'm sick of working 9-5pm and want to take advantage of every opportunity I can to make me, and Lisa, set up for the future.

I'm 24yrs old and over the last couple of months have seen many good opportunities go past, knowing that I could make at least 10-20% on most of these purchases.

I know I maybe pushing the limits, or taking a few risks though these risks have been calculated.

Lisa is also sick of renting, so there are other motives, apart from investing.

I'm not saying I would lie on a loan application? I'm purely asking for help, advice.

Rolf, yes we believe we can as we are already renting and have extra cash left over each week in our budget.

cheers

wayne  

评论
I know this doesn't answer your question, but have you thought about building something on that block of land, because at the moment the repayments aren't deductable. If you had a source of income from the land then payments would be deductable & that would give you more cashflow. Is it large enough to agist horses, or could you charge to have a billboard put up?  

评论
Hiya Wayne

Your higish LVR will restrit you a little, but its possible that someone would provide funding on an asset base only, say 70 % of the new property you want to buy. Up to 80 % at okish rates is also doable.

In either case I believe youd have to extract as much equity out of your exist portfolio by doing maybe a 95 % refinance on the IPS.

The block of land is a major cashflow liability and I would agree with the others that you look to get some cashflow from it.

You may be able to push this through without lo doc product depending on how your valuations come in.

ta
rolf  

评论
Hi skater,

Yes we've looked at building on the block in yanchep, though the problem is that we would like to build a 2 storey to take advantage of the ocean views. We could definately build a single storey, though we can't afford a 2 storey at the moment.

There's also the issue of yanchep being too far away to live in as our PPOR. However, that is an interesting point - as I'm not sure that if we built a house up there would this then increase our borrowing power after building it? I guess it would increase the equity, put then we are problem faced with the same service issues?

cheers

wayne  

评论
waynel2 said:
Hi skater,

Yes we've looked at building on the block in yanchep, though the problem is that we would like to build a 2 storey to take advantage of the ocean views. We could definately build a single storey, though we can't afford a 2 storey at the moment.

There's also the issue of yanchep being too far away to live in as our PPOR. However, that is an interesting point - as I'm not sure that if we built a house up there would this then increase our borrowing power after building it? I guess it would increase the equity, put then we are problem faced with the same service issues?

cheers

wayneClick to expand...
Hi Wayne
I am in the same situation as you Wayne but only on larger numbers.
I just signed up to build on one of my blocks to achieve the cash flow to allow me to use the equity to purchase more IPs.
Another option for you is to build then move into the IP for 3 months then sell it for CGs free. :D  
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