Borrowing Capacity ??

[skier]

Can anybody please advise what is my approx borrowing capacity.? and how they work it out.?

Two lenders said no more.

A financial planner said your too overweighted in property.!!
As a great author once said all my eggs are in one basket which I watch very closely.!!

This is my exact finacial position:

A) Split Loan Variable (Aims Home Loans) @ 6.2 %

Home Value 640K

Portion A) P & I 90K Monthly Repay $ 614

Portion B) I / O 85K Monthly Repay $ 440

B) Investment Loans( Homepath) Variable@ 5.65%

Property1) Value 360K Loan 318K Monthly Repay 1,495 Rent 330 P/ Wk

Property 2) Value 375K Loan 328K Monthly Repay 1,540 Rent 340 P/ Wk

C) Income and other Debts,Assets:

Monthly gross PAYE 17,063 Tax Paid 4,265 being 25 % after ITWVariation.

Car value 10K and Super 100K

No other Assets,Debts or Loans of any sort.

TWO Credit Cards, Limit each $1,000 balance is NIL.!!!!

QUESTIONS:

1) How many properties can I afford comfortably assuming average price 350K renting at $320 P Wk.?

2) Your suggestions for my next lender

Thanks heaps fellow IPERS!!

 

[Rolf Latham]

Hi Skier


It seems to me you have an equity and/or structuring problem, NOT a service problem.

With an income like that you can borrow in the region of 1.5 to 2 + million on top of your current debt where the rental rtn is around the 5 to 6 % mark.

Clearly, I would recommend you sit with a good independent broker to get some different views on this.

By focussing on "A lender" and asking them to work with you, you will be limited by that lender's product and risk assessment options.

If your equity numbers are right you can possibly hold another 1 to 1.3 mill worth of stock without much hassle.

Having said all that I have no idea of your structure nor your family situation so the above may not apply.


Ta

Rolf