Borrowing capacity restricted by joint borrowings

[PHF]

Consider this scenario....
I own a half share in a property with a freind. The mortgage is in both names.
I want to buy another rental in my own name.
When assessing my borrowing capacity, the bank will look at the current joint loan as being soley mine, yet only count half the asset as being mine.
If I had a few of these jointly held rentals, I would have severly restricted my borrowing capacity.

How do I go about buying jointly held investment properties without restricting my borrowing capacity?

Any guidance would be greatly appreciated

Thanks
PHF

 

[alexlee]

If you can afford to buy several jointly owned properties, then you can also afford to buy solely in your own name. Why buy jointly at all?

 

[Nathan]

I never buy jointly with anyone.

I am not married however when thus day does arrive, I wouldnt put house in two names. It would either be in my name soley or spouses name soley.

If its a flip or being purchased cash etc then jointly may work but for a buy and hold portfolio its suicide to your potential buying jointly.

 

[peaches]

This is a very common trap people fall into. The only lender I am aware of who treats the exposure on a shared based ( rather than joint and several) is AMP.

The best advice is don't do it - it is fraught with dangers and an excellent way to ruin a good relationship

 

[Rolf Latham]

St Goerge is another depending on the circumstances

And of course many branchies and brokers can make things dissapear that I refuse to.

ta
rolf

 

[PHF]

Would I have been better off buying as tennants in common and each of us having a separate loan?

 

[alexlee]

Would I have been better off buying as tennants in common and each of us having a separate loan?

You would have been better off buying a cheaper property solely in your name. Why this insistence on buying jointly? What's the advantage?

 

[peaches]

PHF is correct - tenants in common is way for you to distribute the ownership but does nothing for the lenders - the loan is still joint and severally liable ie: if one borrower gets run over by a bus the other borrower has to repay the full loan.

There are loans that allow you to have multiple splits in order to keep each borrower's interest separate but you are still guaranteeing each other so the liability still stands.